Karnataka is set to witness an increase in liquor prices, including beer, due to a proposal presented by the state government in the 2023-24 budget. Chief Minister Siddaramaiah unveiled the government's budget for the upcoming fiscal year, announcing a 20% rise in the current rates of Additional Excise Duty (AED) on Indian Made Liquor (IML) across all 18 slabs. Furthermore, the proposal entails an increase in the AED on beer from 175% to 185%.

For IML valued up to Rs 449 per carton box currently has AED of Rs 179 per bulk litre. With the proposed increase, the price will increase to Rs 215 per bulk litre. Similarly, those valued at Rs 1,000 to Rs 1,099 per carton box with an existing AED of Rs 818 per bulk litre will now be Rs 982. Liquor valued at Rs 15,001 and above with an existing AED of Rs 4,465 per bulk litre, will now increase to Rs 5,358 per bulk litre.

During the budget speech, Siddaramaiah highlighted that despite the raised excise rates, the cost of liquor in Karnataka would remain comparatively lower than that of neighbouring states. He emphasised that these increases along with stringent enforcement and regulatory actions, will achieve a revenue collection target of Rs 36,000 crore for the fiscal year 2023-24. Siddaramaiah expressed confidence in these measures contributing to the state's financial goals.

The increase in excise tax had been indicated a while ago, with the government looking for ways to boost its revenues for implementing the five guarantee schemes that are expected to cost them Rs 52,000 crore a year.