New alcohol policy brings mixed cheer on prices

Mangaluru: Liquor vendors and hospitality industry representatives in the coastal districts of Karnataka have reported sharply divergent impacts from the state’s new alcohol‑in‑beverage taxation policy, with cheaper liquor becoming costlier and premium brands seeing price cuts, following its rollout on May 11.Ramesh D Nayak of Rathna’s Wine Gate said prices of cheaper liquor are expected to rise by around 20%, while premium brands may become cheaper by 5% to 12%, and in some cases by as much as 20%. He said prices of low‑cost liquor have already been revised multiple times in recent years, with some brands nearly doubling over the past four years.Vendors said 75% to 80% of consumers in the region prefer cheaper liquor and that the revised pricing would place a heavier burden on this segment.

Vendors also said a similar trend is visible in the beer segment, with strong beer becoming costlier and premium beer prices declining.The new policy replaces the earlier bulk‑litre‑based taxation system with a model that taxes liquor based on actual alcohol content.Traders said confusion over revised prices continues, and supply shortages over the past week have made it difficult to assess the policy’s impact on sales.

Vendors also raised concerns over the 2% tax collected at source and the additional rounding‑off of the excise duty.Liquor vendor Louis J Pinto said the added levies would “eat up” revenue.Vendors said Karnataka has traditionally had some of the highest liquor prices in the country, particularly for premium brands. They said the revised tax structure could make prices of medium and premium liquor more competitive compared to neighbouring states, though still higher than Goa, and could discourage the movement of liquor into Kerala and Tamil Nadu.Hospitality industry representatives said lower prices for premium liquor and beer could help improve footfall. Bar and restaurant owner Vadi Shenoy said reduced prices of premium beverages are expected to attract more patrons.Meanwhile, MLC Ivan D’Souza chaired a meeting on Thursday to address excise‑related issues in Dakshina Kannada, including public difficulties and liquor distribution concerns during home events. Participants decided to urge the chief minister and excise minister to amend the new excise law, particularly CL‑5 licensing, and flag obstacles in obtaining permissions.