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26 June 2026

Karnataka leads India’s new alcohol tax experiment

India | Karnataka became India's first state to adopt an Alcohol-in-Beverage (elsewhere known as ABV) excise duty structure. Before, alcohol was taxed on a bulk litre-based system. The new policy, effective since 11 May, deregulates strict government-controlled prices. Brewers and alcohol producers now set prices based on market factors and alcohol content within eight price slabs.

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