Karnataka revises excise policy for liquor eff April

Liquor stocks surged up to 7% after Karnataka Chief Minister Siddaramaiah announced a major excise policy revamp in the Karnataka Budget 2026. The overhaul shifts taxation to a system based on the actual alcohol content of each beverage and deregulates liquor pricing.

This aligns with international standards followed by mature markets such as the UK, the EU, Australia, and parts of the US. Phasing is expected to take 3–4 years, giving manufacturers time to recalibrate.

The revised structure will take effect from April 2026.

The government will no longer fix prices, allowing manufacturers to set rates competitively within slabs and reducing liquor prices.

United Spirits rose 7%, United Breweries and Tilaknagar Industries gained around 5%, Radico Khaitan jumped 6%, and Sula Vineyards, Allied Blenders, and Globus Spirits also advanced.

Last year, the state raised Additional Excise Duty multiple times, hurting alcohol makers.   

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