Karnataka rolls out India’s first alcohol-in-beverage liquor tax system

Karnataka has introduced an Alcohol-in-Beverage (AIB)-based excise duty system, replacing its earlier bulk litre-based taxation model. The revised framework removes government-administered price fixation and allows producers to position products within pricing slabs based on market considerations and alcohol content. This system is intended to align prices in Karnataka with those in neighbouring states and restructure taxes according to alcohol content, making alcoholic beverages available at relatively lower prices.