Karnataka Alcohol Tax Reforms: CIABC and BAI Express Divergent Views
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Karnataka Alcohol Reforms: IMFL Makers Wary, Beer Industry Cheers New Duty Structure
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News18•07-03-2026, 19:45
Karnataka Alcohol Reforms: IMFL Makers Wary, Beer Industry Cheers New Duty Structure
•Karnataka's new alcohol-based duty structure and excise reforms draw mixed reactions from the beverage industry.
•CIABC (IMFL and wine makers) expresses caution, fearing price hikes, lower sales for IMFL, and adverse revenue impact, stating the policy favors beer.
•BAI (beer manufacturers) hails the reforms as a landmark step, praising the shift to Alcohol-in-Beverage (AIB) taxation, a WHO-recommended standard.
•Chief Minister Siddaramaiah announced reforms including deregulation of price fixation, slab rationalization (16 to 8), and a Rs 45,000 crore revenue target by 2026-27.
•ISWAI (imported spirits/wines) welcomes free pricing and slab rationalization, seeing potential for investment and premiumization, but awaits final tax structure details.
