Karnataka rewrites liquor math: premium scotch, beer 20-25% cheaper; mass IML jumps 20-30% from May 2026
Karnataka becomes first Indian state to tax liquor by alcohol content, collapsing 16 excise slabs to 8 from May 2026. Premium scotch (Chivas, Glenfiddich) and mild beers (Corona, Heineken) get 20-25% cheaper, while mass-market IML brands like McDowell's and Royal Stag rise 20-30%. Reshapes pricing for 131 spirits and 35 beer SKUs.
What happened
Karnataka Excise Department · Karnataka shifts to alcohol-content-based excise from May 2026, collapsing 16 slabs to 8. Premium scotch and mild beer drop
Key facts
- 8 slabs from 16
- premium 20-25% cheaper
- budget 20-30% costlier
- 70-75% excise revenue from slabs 1-5
- 131 IML brands
- 35 beer brands
- Rs.45 to Rs.15,500 MRP range
Why this matters
The 16-to-8 slab collapse opens a window to acquire or license premium scotch and mild beer SKUs before the May 2026 reset, while mass IML portfolios may trade at distressed multiples as Karnataka's blueprint risks national contagion.