New Alcohol-in-Beverage Tax Structure Rolls Out

Karnataka has implemented a pioneering Alcohol-in-Beverage (AIB) excise policy, shifting taxation from bulk volume to actual alcohol content. Following Chief Minister Siddaramaiah's budget proposal, the revision collapses 16 excise slabs into eight.

 This groundbreaking overhaul slashes prices for premium Scotch and mild beers by up to 25%. However, budget-segment Indian-Made Liquor (IML) has become 20% to 30% costlier. While consumers of premium brands cheer the reduction, local distillers express severe apprehensions about shrinking market shares for smaller, homegrown labels.