Beer sales in Karnataka plummet after 200% excise duty hike

India Oct 07, 2025

Karnataka's liquor and beer sales have dropped sharply in 2025 after the state hiked excise duty—beer now gets taxed at 200% of its production cost.
This price jump led to beer sales falling by approximately 19% between April and September 2025 compared to April-September 2024.

Government made more money despite fewer people buying beer

Even with fewer people buying beer—sales dropped from 242 lakh boxes (April-September 2024) to just 195 lakh boxes during the same period in 2025—the government actually made more money, collecting ₹19,571 crore in excise revenue versus ₹17,702 crore last year.
Still, industry groups warn that more tax hikes could hurt future investments and might backfire on state earnings down the line.