Liquor prices set to rise again as Karnataka targets record excise revenue

Liquor consumers in Karnataka are in for another price hike as Chief Minister Siddaramaiah has set a new revenue target for the Excise Department in his record 16th budget. The state government now aims to collect ₹40,000 crore in excise revenue for 2025-26, a significant increase from the ₹36,500 crore collected last year.

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In the 2024-25 budget, the target was initially set at ₹38,500 crore, but the revised estimates indicate a total collection of ₹36,500 crore. To bridge this gap and boost revenue, the government has signaled another round of liquor price hikes.

Announcing the new target, the CM stated that the excise duty structure would be rationalized, particularly for premium liquor, aligning Karnataka’s pricing with that of neighboring states. This move is expected to generate additional revenue while ensuring competitive pricing in the region.

The government also confirmed that liquor licenses, whether vacant or newly available, will be allocated through a transparent electronic auction system. This initiative aims to curb illegal practices and streamline the allocation process.

With an ambitious ₹40,000 crore revenue goal, Karnataka’s liquor prices are likely to see further increases in the coming months, impacting consumers across the state. The excise rationalization process is set to continue into the 2025-26 fiscal year.