The move, announced by Chief Minister Siddaramaiah in the 2026-27 State Budget, makes Karnataka the first State in India to levy excise duty based on alcohol content.
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Despite the Karnataka government reducing the prices of several premium liquor and beer brands under its revamped excise policy, many consumers in Bengaluru alleged that bars, pubs and MRP liquor outlets continue to charge the old, higher rates.The State government introduced a new excise duty regime on May 11, under which alcohol is taxed based on Alcohol in Beverage (AIB) content rather than category. The move, announced by Chief Minister Siddaramaiah in the 2026-27 State Budget, makes Karnataka the first State in India to levy excise duty based on alcohol content.While beverages with higher alcohol content have become more expensive, prices of several premium beers and liquor brands have reportedly fallen by up to 25%.However, customers claim that the benefits of the price reduction are not reaching consumers.Manoj Kumar, a resident of Nagarbhavi, said that several liquor shops near his house continue to charge the old rates despite the government’s revision. “The prices of many beer brands have come down by anywhere between ₹10 per bottle. However, several MRP outlets and bars are still collecting the amount printed on the old labels. Customers are not getting the benefit of the reduced prices announced by the government,” he alleged.Prakash M., a resident of J.P. Nagar, said that the retailers often cite outdated bottle labels as justification for charging higher rates. “When I questioned the staff at a liquor outlet about why they were charging the old price despite reports of reductions, they said the revised prices would apply only to bottles carrying updated labels. Most customers do not know the latest government-approved rates, making it difficult to challenge such claims. The absence of clear information at outlets creates confusion and leaves consumers with little option but to pay the amount demanded,” he said.A liquor shop owner, who requested anonymity, maintained that his outlet was following the revised pricing norms. However, he acknowledged that some outlets may still be selling products at older rates.“Most retailers are complying with the government’s directions and passing on the reduced prices to customers. However, some liquor shops, bars and pubs may still be charging based on older stock purchased before the revision. Once such inventory is exhausted and fresh consignments arrive, pricing is expected to become more uniform,” he said.Responding to the complaints, the Excise Department officials said that all officers have been instructed to conduct surprise inspections across the State.“We have directed officials to carry out checks and ensure that retailers adhere to the revised pricing structure. Appropriate action will be taken wherever violations are found,” a senior Excise Department official said. Published - May 29, 2026 10:12 pm IST
