Premium Liquor Brands In Karnataka To Cost More? Govt Plans Excise Slab Revision

The Karnataka state government has set an ambitious revenue target of ₹40,000 crore from the excise department for the 2025-26 financial year, as announced in the latest budget. This move signals a likely increase in liquor prices, particularly for premium brands, to align them with rates in other states.

Excise Slab Revision and Revenue Boost

To achieve this revenue goal, the government has proposed revising excise slabs, which could lead to a hike in liquor prices. The budget document highlights that the revision will primarily impact premium liquor, ensuring that Karnataka's pricing is on par with other states.

Additionally, the government plans to allocate vacant and available liquor licenses through a transparent electronic auction system. This move aims to expand liquor sales and maximize revenue collection.

In a step towards modernizing administration, the government has developed software and online services for all functions of the Excise Department. These digital initiatives are expected to streamline operations and enhance public service delivery.

For the 2024-25 financial year, the revised excise revenue estimate stands at ₹36,500 crore. With the target set at ₹40,000 crore for the upcoming fiscal year, the government has confirmed that rationalizing excise slabs and revising duties will continue in 2025-26.

As Karnataka moves towards achieving this target, liquor consumers in the state may have to brace for another round of price hikes in the near future.