Karnataka becomes first Indian state to tax alcohol by strength in excise overhaul

Karnataka, a state in southwestern India, has overhauled its liquor tax regulations, moving to a system where alcohol is taxed based on its ABV, rather than the previous bulk litre-based system.

The new regulations came into force on Monday 11 May.

“For the first time in India, the AIB-based excise duty structure has been implemented in Karnataka from May 11, 2026. It is globally recognised as the gold standard for alcohol taxation,” the Karnataka Excise Department announced in a statement.

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