In a mixed bag of news for tipplers in Karnataka, the rates of some of the premium liquor in the State have come down, while some lower-end liquor has become expensive from August 27.

The revision of rates of liquor follows rationalisation of slabs, a long-pending demand, by the State Government that is expected to not only bring down the cost of some popular brands, but is also expected to increase excise revenue to the government.

While the rationalisation of liquor rates came into force on August 27, wine merchants in Bengaluru were yet to get the new rate list, and said that till such time the new rates are published, liquor would be sold at the old rates.

The government had notified August 27 as the date on which the new prices would come into force when it notified the changes on August 23.

According to Lokesh K.T., president of Bengaluru Wine Merchants’ Association, the lower end of the premium liquor that normally costs above ₹1,500 per bottle could see a reduction by around ₹200 per bottle while the lower end liquor could see an increase by about ₹50 to ₹100 per bottle. “Wine merchants are expecting averaging out in their sale cost on the old stock as the new excise regime kicks in.”

The rates have been revised following changes to the Karnataka Excise (Excise Duties and Fees) Rules and are “applicable to brandy, whiskey, gin, rum and such other liquors, but not for beer, wine, toddy and fenny.”

The rationalisation of liquor rates had been announced by the government in the 2024-25 budget as the hospitality industry had been urging for rationalisation of rates to bring the prices in Karnataka on par or closer to the rates in other States, especially the neighbouring States. A committee set up to study the demand had recommended new slabs, bringing down the number of slabs from 18 to 16, but the revision of rates was hanging in air due to disagreement about the rates between the distillers and the government.

The government wanted the distilleries to pass the benefit of the rationalisation to the consumers while the distilleries were holding on to downward reduction of the declared price-supply of liquor. Under the rationalisation, the government had asked distillers to keep the declared price less than or equal to declared price offered by the manufacturer to other States.