Daijiworld Media Network - Bengaluru

Bengaluru, Oct 6: The implementation of the Alcohol in Beverage (AIB) policy has resulted in a significant increase in beer sales in Karnataka. During the first six months from April to September, beer sales rose by 41.32% compared to the corresponding period last year.

The Excise Department collected Rs 3,377.88 crore in revenue from beer sales during the first half of the year, compared to Rs 2,836.64 crore during the same period last year. This represents an additional revenue of Rs 541.24 crore.

Overall excise revenue collection also increased by 13.39%. While Rs 19,570.23 crore was collected from April to September last year, the revenue during the same period this year stood at Rs 22,191.63 crore. This includes revenue from various sources, including Indian-made liquor, beer sales, licence fees and fines.

For 2026-27, the Excise Department has been set a revenue collection target of Rs 45,000 crore. The department has already reached close to half of the target in the first six months, and revenue is expected to increase further during the upcoming festive season.

Under the AIB policy, which came into effect on May 11, the maximum retail prices of lager beers with 5% alcohol content and certain premium Indian-made liquor brands, including Scotch whisky, were reduced. Following this, beer sales witnessed a significant increase.

Beer sales increased by 34.92% from April to June and by 49.69% from July to September. As a result, the overall growth in beer sales during the first six months reached 41.32%.

In comparison, sales of Indian-made liquor increased by only 1.14% from April to September. During this period, the department collected Rs 17,424.57 crore in revenue from Indian-made liquor, compared to Rs 15,376.22 crore during the corresponding period last year.

Compared to beer, the increase in revenue from Indian-made liquor was lower. However, revenue increased from the first four price slabs, ranging from Rs 90 to Rs 165 for 180 ml.

“This segment alone contributes more than 70% of the total excise revenue,” sources said. In Karnataka, the prices and taxes on Indian-made liquor are determined based on the applicable price and tax slabs.