Karnataka links liquor tax to alcohol content

Bengaluru: The Karnataka government has introduced a new excise policy to tax beverages based on the volume of alcohol present in them, in what it called the first such move in the country.

While consumers may say three cheers to beer as it becomes cheaper, the new tax regime has left local distillers bitter as they fear a drop in sales.

Under the new policy, the government has completely deregulated the pricing decision. Product placement within slabs has been left to producers based on market considerations, the excise department said in a statement.


The number slabs for Indian-made liquor has been cut by half to eight, keeping in mind the availability of liquor at cheaper prices to consumers, it said.