Daijiworld Media Network – Bengaluru

Bengaluru, May 12: In a major jolt to liquor consumers, the Karnataka state government has implemented a new policy increasing the tax on alcohol by 20%, effective immediately. The tax structure is now based on the volume of alcohol content in the beverages.

Under the new 'Alcohol in Beverage' policy, the overall prices of liquor have surged by 20% to 30%. According to this framework, taxes will be levied strictly based on the percentage of alcohol present in a bottle. Consequently, beverages with higher alcohol content will attract higher taxes, while those with lower alcohol content will be taxed less.

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The prices of Indian liquor, including whisky, rum, brandy, and gin, have seen a 20% hike. In Karnataka, the cost of 180 ml tetra packs of whisky, rum, brandy, gin, and vodka will increase by a minimum of 20%.

The price hike will significantly impact lower-income groups, as the first four slabs of liquor—which have an average alcohol content of 42%—have become considerably more expensive. Notably, these four slabs alone contribute to 80% of the state's total excise revenue. Furthermore, prices at bars and restaurants are expected to rise even further beyond the Maximum Retail Price (MRP).