Karnataka has recently garnered attention for making premium liquor more affordable, challenging its previous reputation for high alcohol prices. This shift is attributed to strategic tax reforms, the proliferation of MRP liquor outlets, and a vibrant local drinking culture.
Tax Reforms: Making Premium Liquor More Accessible
Historically, Karnataka imposed one of the highest alcohol taxes in India, with levies reaching up to 83% of the Maximum Retail Price (MRP), making it the most expensive state for liquor. However, in 2024, the state government implemented significant tax reforms to address this issue.
The number of excise duty slabs was reduced from 18 to 16, leading to a 15–25% price drop for premium Indian Made Liquor (IML) brands, including whiskey, rum, gin, and brandy. This move aimed to align Karnataka’s liquor prices with those of neighboring states, boost local sales, and increase excise revenue.
MRP Liquor Stores: Transparent and Convenient
The rise of MRP (Maximum Retail Price) liquor outlets, such as Hi-Spirits, has transformed the retail landscape in Karnataka. These stores offer a wide selection of domestic and international spirits at clearly marked prices, ensuring transparency and affordability for consumers.
Typically open until 10 PM, these outlets provide ample time for customers to purchase their preferred beverages. The availability of budget-friendly options, like ₹75 tetra pack Old Monk, alongside premium Japanese whiskies and local brews, caters to a diverse clientele.
Vibrant Drinking Culture: Bars and Local Delights
Karnataka’s cities, particularly Mangalore, boast a lively bar scene that complements the state’s affordable liquor prices. Establishments such as Liquid Lounge, Onyx, Spindrift, Froth on Top, and The Loft offer a range of cocktails and local brews, enhancing the social drinking experience.
For those seeking traditional flavors, local beverages like toddy—a mildly alcoholic drink made from palm sap—provide a unique taste of Karnataka’s cultural heritage.
Summing Up
Karnataka’s transformation into a more pocket-friendly state for alcohol consumption results from deliberate tax reforms, the expansion of MRP liquor outlets, and a thriving bar culture. These factors collectively contribute to a more accessible and enjoyable drinking experience for residents and visitors alike.
