Last Updated:
Karnataka Budget 2025 on Liquor Rates: CM Siddaramaiah said the target for excise tax collection for the coming year has been set at Rs 40,000 crore.
Karnataka Budget-Liquor Rates: Earlier this year, beer prices were increased. A 650ml bottle is now priced Rs 10-45 higher, depending on the brand. (Representative/AP File)
Karnataka Budget 2025: Buying alcohol in Karnataka may burn a hole in your pocket as liquor prices are likely to increase to match the rates of the neighbouring state. Chief minister Siddaramaiah, while presenting the state Budget 2025-26, said that alcohol rates will be reviewed.
The CM further informed the Karnataka Assembly that excise tax collection last year stood at Rs 36,500 crore. The target for the coming year has been set at Rs 40,000 crore, he added.
The beer lovers were already facing the brunt of steep hike in prices when the beer duties were increased on January 20. A 650ml bottle is now priced Rs 10-45 higher, depending on the brand.
A report in Times of India had quoted Karnataka government as saying that the hike was necessary to plug a revenue gap in the excise department, despite a surge in liquor sales earlier this year.
The report stated that the excise duty has increased from 185% to 195% of the billing price, or Rs 130 per bulk litre, whichever is higher. This means a bottle that once cost Rs 100 now costs Rs 145, while a Rs 230 bottle now sits at Rs 240.
TOI quoted liquor vendors who feared beer sales may be brought down by at least 10%. Karunakar Hegde, president of the Federation of Wine Merchants’ Associations, was quoted as saying in January: “For the past week, there was no supply of beer due to the price hike. Even a week before, breweries began slowing production, and now they will need to realign their processes. As a result, there’s a shortage, the market is dry, and business is taking a hit. Purchases have already dropped 10%, and the lack of stock is impacting sales significantly.”
