Cheers! Premium Liquors Rate To Fall Today In Karnataka As Govt Slashes Slabs

In a latest move, the Karnataka government has declared a cut on slabs for premium liquors to be effective beginning from today. The substantial decline seeks to make the high-end brands affordable, enhance revenue, and to boost sales in the states. Earlier, a source from the Excise Department said, "With this, we aim to stop people from procuring premium alcohol from outside Karnataka. This will also boost sales in the state and add to our revenue."

Earlier, the state government faced revenue losses due to increased prices of premium liquors as compared to neighbouring states. The prices of premium liquors including brandy, rum, gin and whisky were quite high in Karnataka which led consumers from border areas to purchase these products from other states where prices were lesser.

The Karnataka government announced the slash on slabs for premium liquors in order to address the issue and decided to revise the prices to boost local purchases and compensate the revenue losses.

However, the cut on slabs for premium liquors was originally expected to implemented on July 1, 2024 but postponement in the revision procedure led the new prices to come into effect now.

Earlier last week, Karunakar Hegde, Vice-President of the Federation of Wine Merchants Association, Karnataka said, "Many distilleries have stopped production fearing losses since they now produce at a higher cost and will be forced to sell at lower prices once the notification kicks in. Retailers also don't store premium liquor since any price changes would lead to losses."

According to a report published in asianetnews, here is the new tariff structure for premium liquors:

• 451-500 Rate Slab: Rs 294
• 501-550 Rate Slab: Additional Duty of Rs 386
• 551-650 Rate Slab: Duty of Rs 523
• 651-750 Rate Slab: Additional Duty of Rs 620
• 751-900 Rate Slab: Rs 770
• 901-1050 Rate Slab: Rs 870
• 1051-1300 Rate Slab: Rs 970
• 1301-1800 Rate Slab: Duty of Rs 1200
• 1801-2500 Rate Slab: Duty of Rs 1400
• 2501-5000 Rate Slab: Duty of Rs 1600
• 5001-8000 Rate Slab: Duty of Rs 2000
• 8001-12,500 Rate Slab: Duty of Rs 2400
• 12,501-15,000 Rate Slab: Duty of Rs 2600
• 15,001-20,000 Rate Slab: Duty of Rs 2800
• Above 20,000 Rate Slab: Additional Excise Duty of Rs 3000