BENGALURU: Good news for beer lovers! Prices of mild and lager beers in Karnataka have dropped by 20-25 per cent, effective May 11. The Excise department has rolled out the new price list under the Alcohol in Beverage (AiB) policy for beers and spirits, under which the Maximum Retail Price (MRP) of beers, with 5 per cent alcohol v/v has dropped by 20-25 per cent.
As per the new price list, the MRP on 650ml of some of the most popular mild beer brands with 5 per cent alcohol v/v – Kingfisher Premium, Kingfisher Ultra, Budweiser, UB Export, Heineken etc – have been reduced by Rs 75 (KF Premium, Ultra), Rs 70 (Heineken), Rs 25 (UB Export) and Rs 20 (Budweiser Premium).
There’s a price reduction in premium Scotch whiskeys by 20 per cent as well. The MRP on 750ml bottles of Black Label (43 per cent alcohol v/v) and Chivas Regal (40 per cent alcohol v/v) has come down from Rs 5190 to Rs 4100.
The burden of the new Excise taxation policy will be felt most on the first five Excise slabs (lowest) of Indian Made Liquor (IML), which sells in 180ml (nip) tetra packs. The prices in these slabs have shot up by 20-25 per cent. This is where the AiB policy may hit lower to middle income consumers.
The first five slabs contribute between 75 and 80 per cent towards Excise revenue. The new MRP on the most popular rum brand Old Monk, with 42.8 per cent alcohol v/v, has been revised from Rs 765 to Rs 850. OM falls in the fifth Excise slab.
“The final new MRP list of all brands has still not been released. Though the new MRP kicked in on May 11, people are still not aware of the new pricing. We will have to wait and watch the market response,” said industry sources, who didn’t wish to be named. The AiB has replaced the over six-decade-old taxation policy on bulk litre of alcohol.
The State government had on May 8 issued the final notification on the new tax policy announcing the Karnataka Excise (Excise Duties and Fees) (2nd Amendment) Rules, 2026. It came into force on May 11. Karnataka is the first state in India to bring in AiB taxation policy. AiB means the “alcohol content/volume per litre of liquor such as brandy, whiskey, gin, rum, beer, wine, fruit wine, fortified wine”.
The government has also slashed Excise slabs under which alcohol in Karnataka is sold as per MRP, from 16 to 8 now.
