India's Karnataka state to end alcohol price controls from April 2026 - Reuters
India's Karnataka state to end alcohol price controls from April 2026 Reuters
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"Excise duty will be linked to the alcohol content in beverages by introducing an alcohol-in-beverage based taxation system."
— Siddaramaiah , Politician
"An Alcohol-in-Beverage based excise duty structure is globally recognised as the gold standard for alcohol taxation, as it directly targets the alcohol content which is the primary source of negative externalities."
— Siddaramaiah , Politician
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<a href="https://news.google.com/rss/articles/CBMirAFBVV95cUxNbERPMDU4N1dXSDJqclFLUTBxaUJuU2NVNzBEZ3NtaWExbkxJSG1BTkdPLXZrZjVocEhrUWNwTFNqMFcyYjUxV2RUbUxucVJUekhZZDRiR0R3MnZwLVNlaEJ6MVpjbFdiWVJ6NUkwQzF6RVlLaUFQdGVqTkRaMHAxWjdvQ21wUTcyRFp3TE5zLXF6R3hxYl85eFFYcW1NUTE0VkNXTVN6T0VEdkkz?oc=5" target="_blank">India's Karnataka state to end alcohol price controls from April 2026</a> <font color="#6f6f6f">Reuters</font>
Karnataka will end government-administered price controls on alcoholic beverages from April 2026, allowing manufacturers to set prices based on market considerations. The state will also introduce an alcohol-in-beverage-based excise duty structure, linking taxes directly to the alcohol content in drinks.
Karnataka Chief Minister Siddaramaiah announced reforms including an alcohol-content-based duty structure and deregulated pricing. The state aims for a Rs 45,000 crore revenue target from the excise sector by 2026-27. Technology will enhance monitoring and transparency. These changes will modernize the decades-old framework, simplifying business operations and boosting state finances.
Karnataka Chief Minister Siddaramaiah announced a slew of measures which will together boost the alcohol industry. Among the most notable changes, CM Siddaramaiah said the state will levy taxes on beverages based on their alcohol strength, moving away from an age-old practice to a more global approach. Under the Alcohol-in-Beverage (AIB) taxation system, taxes will be based on actual alcohol content per litre, not product category or price.
The Government of Karnataka announced a series of major changes to the state’s liquor policy, covering both taxation and the regulatory framework. The move aims to improve transparency, ease compliance, and boost revenue. Chief Minister Siddaramaiah has also set a revenue target of Rs 45,000 crore for 2026–27 from the state’s excise department.
Karnataka Chief Minister Siddaramaiah announced sweeping reforms in the state's liquor taxation and regulatory framework, including the introduction of a new alcohol-based duty structure, deregulation of price fixation, and technology-driven monitoring systems. He set an ambitious revenue target of ₹45,000 crore from the excise sector for 2026–27.
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