Karnataka pitches content-based liquor tax, threatening to reset India's beer-vs-spirits pricing math

An excise reform committee in Karnataka wants alcohol taxed by ABV rather than category, a shift that could compress the gap between 40% spirits and 5-8% beer. With states starved for revenue and only 1% of women and 20% of men drinking, peers are expected to follow, reshaping shelf economics for brands like Greater Than and Blue Riband.

— Filed Mon, 8 Jun, 2026, 16:35 IST · Source Hindustan Times · Business · Updated

Karnataka's excise reform committee proposes taxing alcohol by content rather than category, potentially reshaping liquor pricing across Indian states. Reform could boost state revenue and rationalize beer-vs-spirits duties, with other states likely to follow Karnataka's lead.