Karnataka becomes first state to tax liquor by alcohol content; premium alcohol to get upto 25% cheaper

The Karnataka government has officially implemented its new Alcohol-in-Beverage (AIB) based excise duty structure. This landmark reform, which replaced a six-decade-old bulk-litre taxation system, has led to a major re-pricing of Indian-Made Liquor (IML) and beer brands across the state.

Karnataka has become the first state in the country to adopt the AIB model, introducing a system where taxes are calculated based on the precise percentage of alcohol content in the beverage rather than its total volume.

As part of this comprehensive restructuring, the state government has streamlined its tax framework, reducing the total number of excise slabs from 16 down to 8.

While the move has brought relief to premium consumers by slashing the prices of high-end scotch whiskies and mild beers by 20–25%, budget liquor offerings widely consumed by lower- and middle-income groups have seen an upward surge of 20–30%.

Brand-wise Revised MRP Slabs for IML (in Rs.)

The Karnataka Excise Department has notified the official revised price lists for various categories of spirits. Below is the detailed breakdown of the revised Maximum Retail Prices (MRP) for across different slabs:

Brands Tracked

131

IML Slabs

Lowest MRP

Rs. 45

Highest MRP

Rs. 15,500

IML Spirits Beer Imports

All Slabs Slab 1 (0-470) Slab 2 (471-520) Slab 3 (521-570) Slab 4 (571-650) Slab 5 (651-750) Slab 6 (751-1300) Slab 7 (1301-5000) Slab 8 (5001+)

Revised MRP for Indian-Made Liquor (IML) · 90ml / 180ml / 750ml · — denotes size not available

#	Brand Name	Slab	90ml	180ml	750ml
1	Legacy Special XXX Rum/Whisky	S1	45	90	370
2	Carnival XXX Rum	S1	55	95	385
3	Black Belt Fine Old Whisky	S1	55	95	385
4	DK Double Kick Fine Whisky	S1	50	95	395
5	Bangalore Whisky/Brandy/Rum	S1	55	95	395
6	Green Champion Superior Whisky & Brandy	S1	55	105	420
7	Royal Gold Cup Extra Smooth Whisky	S1	55	105	420
8	Amrut’s Silvercup Rare Indian Brandy	S1	50	95	—
9	Magic Blended Fine Whisky	S1	50	95	—
10	Three Aces Whisky	S1	55	95	—
11	No.1 Highway Deluxe Whisky	S1	50	95	—
1	Captain Martins Special Malt Whisky	S2	55	105	425
2	Wellington Blended Malt Whisky	S2	50	105	425
3	Carnival Dry Gin	S2	55	105	425
4	Mysore Lancer Deluxe Quality Whisky	S2	55	105	425
5	Amrut’s XXX Classic Rum	S2	55	110	445
6	Amrut’s Silver Cup V.S.O.P Indian Brandy	S2	55	110	445
7	Raja Whisky/Rum	S2	55	110	445
8	Haywards Cheers Whisky	S2	55	110	455
9	Haywards Punch Fine Whisky	S2	55	110	455
10	Amrut Prestige Fine Whisky	S2	55	110	455
11	Original Choice Deluxe Whisky	S2	55	110	485
1	Old Tavern Whisky	S3	70	135	560
2	Bagpiper XXX Rum	S3	70	135	560
3	Original Traveller Premium Whisky	S3	70	135	560
4	Bejois VSOP Indian Brandy	S3	70	135	560
5	8PM Blue Deluxe/Special Rare Blend Scotch Whisky	S3	75	145	595
6	Old Admiral VSOP Classic Indian Brandy	S3	75	145	595
1	Bagpiper Deluxe Whisky	S4	80	155	645
2	McDowell’s No.1 Celebration Classic XXX Rum	S4	85	165	—
3	Old Grain Whisky	S4	—	155	—
4	Original Choice Star Supreme Whisky	S4	85	165	—
5	Honey Bee Premium Indian Brandy	S4	85	165	—
1	Officer’s Choice Gold Blended Malt/Special Whisky	S5	90	175	680
2	Old Grain Whisky	S5	85	155	685
3	Officer’s Choice Special Whisky	S5	90	175	730
4	Old Monk Very Old Vatted Special XXX Rum	S5	90	175	—
5	Director’s Special Whisky	S5	90	175	—
6	Windsor Deluxe Whisky	S5	75	—	—
1	Muscovy Vodka	S6	95	185	785
2	Oxyzen Orange Vodka	S6	—	190	785
3	Amrut Muscovy Triple Distilled Grain Vodka	S6	95	190	790
4	Director’s Special Whisky	S6	90	175	840
5	DSP Black Deluxe Whisky	S6	90	175	850
6	No.1 McDowells Indian Brandy	S6	90	175	850
7	Old Monk Very Old Vatted Special XXX Rum	S6	—	—	850
8	McDowell’s No.1 Luxury Select/Reserve Whisky	S6	105	215	885
9	Seagram’s Imperial Blue Superior Grain Whisky	S6	110	215	885
10	TI Mansion House True Spirit French Brandy	S6	110	215	885
11	Platinum Romanov Vodka	S6	—	215	885
12	After Dark Blue Classic Grain Whisky	S6	110	215	885
1	Seagram’s Royal Stag Deluxe Whisky	S7	150	280	1,145
2	Royal Challenge Premium Select Whisky	S7	140	280	1,145
3	Maqintosh Silver Edition Whisky	S7	—	350	1,150
4	Courrier Napoleon Finest French Brandy-Green	S7	—	285	1,180
5	Seagram’s Royal Stag Double Dark Peaty Whisky	S7	150	285	1,180
6	Old Monk The Legend Rum Very Old Vatted	S7	—	295	1,210
7	Magic Moments Vodka	S7	—	310	1,260
8	Peter Scot Malt Whisky	S7	—	350	1,325
9	Seagram’s Blenders Pride Rare Premium Whisky	S7	170	345	1,330
10	Signature Rare Aged Whisky	S7	—	345	1,330
11	Smirnoff Triple Distilled Vodka	S7	—	345	1,365
12	Amrut Two Indies Rum	S7	—	350	1,400
1	Amrut Nilgiris Indian Dry Gin	S8	—	575	2,350
2	Teacher’s Highland Cream Blended Scotch Whisky	S8	—	575	2,360
3	Black & White Blended Scotch Whisky	S8	—	580	2,375
4	Seagram’s 100 Pipers Deluxe Blended Scotch Whisky	S8	—	580	2,375
5	Black Dog Centenary Black Reserve Aged & Rare Whisky	S8	—	720	2,375
6	Vat 69 Blended Scotch Whisky	S8	—	580	2,375
7	Black Dog Triple Gold Reserve Blended Scotch Whisky	S8	—	—	2,965
8	Amrut Amalgam Malt Whisky	S8	—	—	3,050
9	Amrut Fusion Single Malt Whisky (42.8%)	S8	—	—	3,500

Revised MRP for Beer · Bottled (330ml / 650ml) & Can (330ml / 500ml) · — denotes size not available

#	Brand Name	Bottle 330ml	Bottle 650ml	Can 330ml	Can 500ml
1	Amstel Bier Grande Supreme	170	250	—	195
2	Black Fort Super Strong Beer	85	130	—	95
3	Budweiser Magnum Beer	145	250	—	200
4	Budweiser Premium King of Beers	120	205	—	160
5	Bullet Lager Beer	—	90	—	—
6	Bullet Super Strong Beer	70	120	—	95
7	Carlsberg Elephant Strong/Danish Beer	135	240	—	185
8	Carlsberg Smooth Premium Beer	120	205	—	—
9	Corona Extra Premium Beer	130	—	—	170
10	Geist Repeat Strong	—	—	—	190
11	Haywards 5000 Premium Strong Beer	70	135	—	100
12	Heineken Lager Beer	120	200	—	—
13	Heineken Silver 100% Malt Lager Beer	120	195	—	155
14	Hoegaarden Witbier	125	—	—	170
15	Hoegaarden Witbier Nectarine/Rosee	105	—	—	140
16	Hunter Premium Super Strong Beer	—	170	—	—
17	Kingfisher Premium Lager Beer	60	110	60	80
18	Kingfisher Strong Premium Beer	100	180	80	140
19	Kingfisher Super Smooth Strong Premium Beer	90	170	75	125
20	Kingfisher Ultra Lager Beer	80	150	80	115
21	Kingfisher Ultra MAX Premium Strong Beer	140	245	100	190
22	Kingfisher Ultra Witbier	120	200	—	155
23	Knock Out High Punch Strong Beer	95	175	80	135
24	Legend Strong Beer	60	110	—	85
25	Mount’s 6000 Fine Strong Beer	70	120	—	95
26	Power Cool Strong Beer	80	120	70	90
27	Royal Challenge Premium Lager Beer	—	90	—	—
28	Royal Challenge Strong Premium Beer	70	120	—	95
29	Simba Jungle Stout Beer	120	—	—	170
30	Sunny Beaches Premium Beer	45	80	—	65
31	Sunny Beaches Strong Premium Beer	60	105	—	85
32	Toit Banger Lager/Tint-In-Wit	125	—	—	—
33	Toit Nitro Stout	130	—	—	—
34	Tuborg Green Beer	110	145	—	115
35	Tuborg Strong Premium Beer	120	170	90	130

Imported spirits from other states/countries · 180/200ml & 700/750ml · — denotes size not available

#	Brand Name	180/200ml	700/750ml
1	Oaksmith International Blended Whisky	345	1,170
2	Morpheus Whisky/Brandy	580	1,300
3	Kahlua COFFEE Liqueur	—	1,755
4	Malibu Liqueur	—	1,965
5	Jim Beam Kentucky Straight Bourbon Whiskey	645	2,630
6	Absolut Vodka	695	2,800
7	Johnnie Walker Red Label Blended Scotch Whisky	810	2,810
8	Ballantine’s Finest Blended Scotch Whisky	—	2,870
9	Beefeater London Dry Gin	—	2,875
10	Jameson Irish Whiskey	715	2,930
11	Bombay Sapphire London Dry Gin	—	3,150
12	Jaisalmer Craft Indian Gin	800	3,200
13	Jagermeister	—	3,425
14	Indri Master Blender’s Select Single Malt Indian Whisky	—	3,560
15	Jack Daniels Tennessee Whiskey	1,085	3,570
16	Paul John Indian Single Malt Whisky Brilliance	695	3,600
17	Dewar’s Blended Scotch Whisky Aged 12 Years	—	4,000
18	Johnnie Walker Black Label Blended Scotch Whisky	1,105	4,005
19	Chivas Regal Aged 12 Years Blended Scotch Whisky	—	4,220
20	The Glenlivet Single Malt Scotch Whisky 12 Years	—	5,400
21	Glenfiddich 12 Y.O. Single Malt Scotch Whisky	—	5,610
22	The Irishman Single Malt Irish Whiskey	—	7,950
23	Grey Goose Vodka	—	10,045
24	Johnnie Walker Blue Label Blended Scotch Whisky	—	15,500

Source: Karnataka Excise Department · AIB-based excise duty structure effective May 2026 · All prices in Rs. MRP · Data as notified by Karnataka Excise Department

Express InfoGenIE | Financial Express

Industry Response

The pricing pivot is expected to reshape consumption trends across urban and rural pockets of Karnataka. The new model has reportedly triggered concern among domestic liquor manufacturers.

According to the Karnataka Brewers and Distillers Association (KBDA), the first five slabs, which largely cater to mass-market consumers and include most state-owned distilleries and contribute nearly 70-75% of Karnataka’s excise revenue, have seen Additional Excise Duty (AED) increase by 20-30%, Deccan Herald reports.

In contrast, AED rates for slabs 6 to 8, covering premium alcoholic beverages produced by multinational companies, have reportedly been reduced by 10-15%. As per a Deccan Herald report, retailers across Bengaluru have confirmed that repricing is actively being deployed on shelves, with a visible shift in retail transaction velocity across the new price points.