Karnataka becomes first Indian state to adopt alcohol-content-based excise duty, deregulating liquor pricing
Effective May 11, 2026, Karnataka shifts to an Alcohol-in-Beverage (AIB) duty structure via Notification No. FD 14 PES 2026, letting producers slot products into pricing slabs by alcohol content. Move reshapes liquor and beer economics for retailers and on-trade hospitality across Bengaluru and the state.
Karnataka becomes first Indian state to adopt Alcohol-in-Beverage (AIB) based excise duty structure, deregulating liquor and beer pricing. Producers can now place products in pricing slabs based on alcohol content, effective May 11, 2026.