Karnataka Proposes Liquor Price Hike to Boost Revenue, Beer Up 10%
After recent hikes in diesel tax, power tariffs, and milk prices, the Karnataka government has now moved to increase liquor prices. Though Chief Minister Siddaramaiah had announced the plan in the state budget, the excise department issued an official notification late Tuesday evening, proposing a hike of ₹10–₹15 per quarter for economy-range liquors and a 10% increase in beer prices.
An excise department official explained that the price revision is part of efforts to meet the department’s ambitious ₹40,000 crore revenue target set by the CM. The move also aims to align Karnataka’s liquor pricing with neighboring states, ensuring competitiveness and reducing cross-border liquor flow.
The notification allows for a seven-day window for public objections. The proposed hike applies to economic-category liquors such as whisky, brandy, gin, and rum, while leaving premium liquor prices untouched. Beer will see a uniform 10% price increase across all categories.
According to officials, the porous borders have contributed to a surge in low-cost liquor sales in border districts. With states like Tamil Nadu and Andhra Pradesh restricting the entry of Karnataka liquor while allowing outbound flow, Karnataka has found itself at a competitive disadvantage.
By raising prices, the government aims to curb smuggling and improve revenue collection without affecting premium segments.
Public responses and objections are expected to be reviewed before the final implementation.
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