Karnataka's new alcohol tax could mean cheaper drinks
Karnataka is shaking up its alcohol laws.
Starting in April 2026, the state proposes to begin rolling out a new Alcohol-in-Beverage (AIB) tax that charges based on how strong the drink is, not just its type or price.
This could mean cheaper options for people who prefer drinks with lower alcohol content.
Distilleries and breweries get more freedom
The new rules also give distilleries and breweries more freedom: they can host tastings, sell products manufactured on their premises to visiting tourists, and deregulate price fixation, allowing manufacturers to set their own prices.
The government hopes these moves will boost tourism and push revenue to ₹45,000 crore in FY27 (government target), up from about ₹36,492 crore recorded in FY26 (up to February).
Even investors seemed excited: companies like United Spirits and Sula Vineyards saw their shares jump after the announcement.