Last Updated:June 27, 2025, 10:25 IST
The Karnataka government has reversed its decision to double the liquor excise license renewal fees
Karnataka liquor policy includes significant hikes in excise duties.
The Karnataka government has reversed its decision to double the liquor excise license renewal fees and announced a 50 per cent hike from July 1 onwards. The latest order comes after liquor sellers and craft alcohol producers opposed the 100 per cent hike announced on May 15, ANI reported.
According to reports, the previously proposed 100 per cent hike was expected to boost state revenue by Rs 600–700 crore annually. The state increased the validity period of excise licenses from one year to five years, a major industry demand.
Following appeals from stakeholders, including the Karnataka Liquor Sellers’ Association, the state government has moderated its proposed hike in liquor license renewal fees. Sellers had requested a more manageable increase of 20 to 25 per cent. In response, the government announced a reduced hike of 50 per cent, according to reports.
Revised Fee Structure Based on Population
The new license renewal fees will vary depending on the population of each area:
- Metro corporations with a population exceeding 20 lakh: Rs 9 lakh per annum
- Other metropolitan areas: Rs 7.5 lakh
- Municipal corporations: Rs 6.75 lakh
- Towns, municipalities, and town panchayats: Rs 6 lakh
- Other areas: Fees will be set based on local population data
First Fee Hike Since 2016
This is the first revision of excise license fees since 2016. While multiple proposals to raise fees were made over the past nine years, they were repeatedly postponed due to opposition from liquor sellers.
The revised excise structure, effective from July 1, will apply to over 13,000 license holders across Karnataka, who must renew their licenses at the new rates.
Revised Annual Excise License Fees for Other Categories
The state has also updated the annual fees for various types of excise licenses, expected to generate an additional Rs 300 crore in revenue per year. The revised rates are:
- Distillery and Brewery: Rs 1.5 lakh
- Craft Brewery: Rs 25,000
- Fortified Wine Production: Rs 25,000
- Distillery and Warehouse: Rs 67 lakh
- Bar Charter at International Airports: Rs 18.75 lakh
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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