Karnataka's new liquor tax raises revenue, but industry flags concerns

Bengaluru, Oct 9 (UNI) Karnataka's new alcohol-content-based excise duty system has boosted state revenue, but sluggish growth in Indian-Made Liquor (IML) sales and a sharp rise in beer volumes have raised concerns over the policy's long-term impact on consumers and the liquor industry. Introduced on May 11, 2026, Karnataka's Alcohol-in-Beverage (AIB)-based taxation system links excise duty to the amount of alcohol in a beverage. The policy also reduced the number of excise slabs from 16 to eight and gave manufacturers greater flexibility in setting prices. According to sales figures for July-September 2026 cited by the Confederation of Indian Alcoholic Beverage…