Liquor Prices in Karnataka to Increase Again This Week; Check New Rates

Karnataka Alcohol Price Hike Sparks Backlash as Consumers Face Higher Costs

Karnataka residents are bracing for another liquor price hike in the second week of May 2025 as the state government moves forward with its latest excise policy.

The revised rates, expected to take effect this week, mark the third price increase since the Congress party assumed power, sparking frustration among consumers and industry stakeholders alike.

Why Are Liquor Prices Increasing in Karnataka?

The Karnataka Excise Department has been tasked with collecting ₹40,000 crore in revenue this fiscal year, up from ₹38,600 crore last year. To meet this ambitious target, the government is implementing higher excise duties on hard liquor, including whiskey, rum, gin, and vodka.

The price adjustments follow a recent hike in beer prices, which saw additional excise duty jump from 195% to 205% of the production cost.

New Liquor Price Slabs: What to Expect

According to official sources, the price of liquor across multiple slabs is set to rise:

Slab-1 (currently ₹80) and Slab-2 (₹155) will see upward revisions.
Initial estimates suggest an increase of ₹10 per quarter bottle and ₹50 to ₹100 per full bottle.
Four of the sixteen existing price slabs are expected to be revised in this round.

Here’s a table summarizing the liquor price hike in Karnataka along with key details:

Category	Current Price	Expected Increase	New Price (Estimated)
Slab-1 Liquor	₹80 per quarter	₹10 increase	₹90 per quarter
Slab-2 Liquor	₹155 per quarter	₹15 increase	₹170 per quarter
Premium Whiskey	₹1,500 per bottle	₹100 increase	₹1,600 per bottle
Beer (Local Brands)	₹100 per bottle	₹5 increase	₹105 per bottle
Beer (Premium)	₹150 per bottle	₹10 increase	₹160 per bottle

Consumer Backlash Over Frequent Price Hikes

Many Karnataka residents have taken to social media to express their frustration over the repeated price hikes. One Bengaluru resident lamented, “We understand taxes, but three hikes in such a short time? It’s becoming unaffordable”.

The recently-proposed hike on liquor and beer prices by the Karnataka government has left city-based establishment-owners and customers with furrowed brows

✍️ @anubhabnewinex pic.twitter.com/KDW2tKgHSI

— TNIE Karnataka (@XpressBengaluru) May 5, 2025

Adding to the dismay, beer prices have already surged under new tax rules. Premium beer brands now cost ₹10 more per bottle, while cheaper local varieties have seen price increases of ₹5 or less.

Industry Concerns and Economic Impact

The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has voiced concerns over the impact of rising liquor prices on the hospitality and tourism sectors.

KCCI President M.G. Balakrishna urged the government to reconsider the timing of these hikes, stating, “While we understand the need to augment revenue, it is imperative to consider the cumulative impact of these measures”.

Despite the backlash, officials within the Excise Department defend the policy shift, arguing that the hikes are necessary to maintain funding for public services and meet budgetary obligations. However, critics worry that repeated price increases may drive more consumers toward unregulated alcohol markets, posing public health risks.

With liquor prices set to rise yet again, consumers and businesses alike are bracing for the financial impact. Will these hikes help the government meet its revenue goals, or will they push more people toward alternative markets? Only time will tell.