States » SouthPosted at: May 17 2026 10:45PM


Karnataka introduces India's first alcohol-content based excise system

Bengaluru, May 17 (UN) The Karnataka government has formally rolled out its new Alcohol-in-Beverage (AIB)-based excise duty structure, marking a major overhaul of the state's liquor taxation system and replacing a six-decade-old bulk-litre taxation model.
The reform has triggered a wide-ranging revision of Indian-Made Liquor (IML) and beer prices across Karnataka, making it the first state in India to adopt an alcohol-content-based taxation framework.
Under the new system, excise duties will now be calculated based on the precise percentage of alcohol content in beverages rather than the total volume.
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