Karnataka becomes 1st Indian state to tax alcohol by strength
Karnataka just made history by becoming the first Indian state to tax alcohol based on how strong it is.
The Alcohol-In-Beverage (AIB) policy, announced in the 2026-27 budget and rolled out on May 11, 2026, bumps up taxes on high-alcohol drinks and cuts them for lighter options like beer.
The goal? Encourage healthier choices and tackle some of the social issues tied to drinking.
Bottled beer ₹50-₹75 cheaper, spirits pricier
If you're a beer fan, you'll notice bottles like Kingfisher Ultra and Heineken are now ₹50 to ₹75 cheaper. But if you prefer spirits, like Old Monk Rum, they've gotten pricier.
Bars might tweak their menus, but rising costs for fuel and food could mean bigger changes are slow.
Draft beer isn't affected at all since it's not part of this policy.
Vinod Giri: AIB policy globally aligned
This move matches global "harm proportionate" taxation trends: basically, stronger drinks get taxed more because they can cause more harm.
Vinod Giri from the Brewers Association of India called this globally aligned.