Karnataka Announces Alcohol Taxation Overhaul and Deregulates Pricing from April 2026

Karnataka Chief Minister Siddaramaiah announced comprehensive reforms to the state's liquor taxation and regulatory framework in the 2026 budget. The government plans to adopt a globally recognised Alcohol-in-Beverage (AIB) based excise duty system, taxing alcohol based on actual alcohol content, starting April 2026. Pricing slabs will be reduced from 16 to eight, and government-administered price fixation will be deregulated, allowing producers to set prices within slabs. The reforms aim to improve transparency, compliance, and ease of doing business, with a revenue target of Rs 45,000 crore by 2026-27. The changes have been welcomed by the alcohol industry, reflected in a rise in liquor stocks.