Alcohol price hike in Karnataka: Yet another blow to consumers

Following hikes in the prices of milk, water, electricity, bus fare, metro tickets, the Karnataka state government is now preparing to raise liquor prices. This marks the third increase in alcohol prices in the past two years, leaving alcohol consumers facing yet another financial pinch.

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As part of its 2025-26 budget, the state has set a target of collecting Rs 40,000 crore in revenue through the excise department. To meet this ambitious goal, the government has proposed several increases in alcohol duties. Most notably, the excise duty on beer is set to rise from 195% to 205%, as per a draft notification issued by the government. Citizens have been given a week to raise objections.

The price of all beer varieties in the state is expected to go up by Rs 10 to Rs 20. Additionally, there are plans to hike the prices of other liquors such as brandy, whiskey, rum, and gin by Rs 10 to Rs 15 per quarter bottle. Stronger beer brands are likely to see a more significant price increase. However, high-end or premium alcoholic beverages, such as wine and feni, will be exempt from this price hike.

In essence, the excise department is aiming to boost revenue by placing a heavier financial burden on regular alcohol consumers through staged price increases.