Data: Why Alcohol in Karnataka cost the highest, Goa cheapest
Why same alcohol bottle sell at Rs 100 in Goa and Rs 229 in Telangana. According to International Spirits & Wine Association of India, Karnataka has the highest excise duty of 80 percent, Goa the cheapest at 55 percent
By Newsmeter Network
Representative Image: International Spirits & Wine Association of India has asked for uniformity in liquor prices
New Delhi: Why does a bottle of Jameson Whiskey cost Rs 3495 in Karnataka, Rs 2700 In Telangana and the same bottle is Rs 1800 in Harayana. Thanks to the Excise duty imposed by different state governments , the prices of alcohol varies from state to state.
According to the International Spirits & Wine Association of India, Karnataka tops the chart with an 80% excise duty, the highest in the country, while Goa continues to have the lowest levies, with 55%. Though excise taxes in Goa have marginally increased over the last few years, the coastal state still offers the cheapest liquor in the country.
Compared to Goa, alcohol costs are significantly more in neighbouring states in Karnataka, Telangana, and Rajasthan due to stark differences in excise duties and state-level taxes.
How does it impact:
This tax disparity has a direct impact on retail prices. For instance, Jonny Walker Red Label 750 ml costs Rs 1400 in Delhi, Rs 1650 in Goa, Rs 1700 in Bangalore, and Rs 2400 in Hyderabad.
Similarly, A bottle of Black Label whisky is sold at Rs 3,310 in Delhi, Rs 4,200 in Mumbai, and around Rs 5,200 in Karnataka.
The wide variation in taxation undermines the 'one nation, one tax' principle. Despite industry calls for reform, finance ministers have made little effort to address the issue. Higher taxes have also led to increased bootlegging, causing revenue losses for states.
Recently, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has echoed similar concerns. Deepak Roy of CIABC stated that the absence of a unified taxation policy poses a major challenge for the sector. "The industry needs a consistent tax framework to drive growth," he said.
Beer prices to increase in Karnataka:
So, Beer prices in Karnataka are set to rise following the state governmentās decision to increase the tax on beer to 205% of the manufacturing cost, up from the earlier 195%. The revised rates are part of new draft rules issued by the state, which also include a 10% hike in the Additional Excise Duty.
This revision is expected to push the price of premium or imported beer brands up by around ā¹10 per bottle, depending on their production cost.
This would be the third tax hike on beer in the last three years after recent hike in January 2025.
