The shift to the AIB-based structure was initially announced by the Chief Minister during the 2026-27 Budget speech. Following up on that commitment, the government issued Notification No. FD 14 PES 2026 on May 8, 2026, amending the Karnataka Excise (Excise Duties and Fees) Rules, 1968. The revised MRPs apply to all products manufactured after May 11, 2026. Crucially, the AIB structure deregulates government-administered price fixation. Instead of the state rigidly setting prices, producers now have the flexibility to place their products within specific pricing slabs based on market considerations and alcohol content. The new AIB structure marks a historic shift toward deregulation in the Indian liquor industry, balancing market-driven pricing for producers with structured slabs intended to rationalise costs for the consumer.The shift to the AIB-based structure was initially announced by the Chief Minister during the 2026-27 Budget speech. Following up on that commitment, the government issued Notification No. FD 14 PES 2026 on May 8, 2026, amending the Karnataka Excise (Excise Duties and Fees) Rules, 1968. The revised MRPs apply to all products manufactured after May 11, 2026. Crucially, the AIB structure deregulates government-administered price fixation. Instead of the state rigidly setting prices, producers now have the flexibility to place their products within specific pricing slabs based on market considerations and alcohol content. The new AIB structure marks a historic shift toward deregulation in the Indian liquor industry, balancing market-driven pricing for producers with structured slabs intended to rationalise costs for the consumer.
Karnataka shifts to India's first alcohol-in-beverage duty structure; Revised liquor and beer prices announced
