Karnataka rolls out India's first Alcohol-in-Beverage excise regime, slashing IML slabs to 8
Effective May 11, 2026, Karnataka deregulates government price fixation and lets producers position products within 8 rationalised IML slabs. The AIB-based duty structure aims to keep state liquor prices competitive with neighbours, marking a first-of-its-kind shift in Indian excise policy.
Karnataka becomes first Indian state to adopt Alcohol-in-Beverage based excise duty structure effective May 11, deregulating government price fixation, rationalising IML slabs to 8, and letting producers place products within slabs to keep liquor prices competitive with neighbouring states.
Why this matters
Karnataka becomes the first Indian state to shift excise duty calculation to alcohol content rather than declared price, deregulating producer pricing and reshaping IML slab architecture in a market long defined by state-set MRPs.
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