Karnataka State Excise Department implements Alcohol-in-Beverage (AIB) based excise duty

Exam-focused facts from the 18 May 2026 current affairs briefing.

Key facts

Karnataka is the first state in India to implement an Alcohol-in-Beverage (AIB) based excise duty structure.
The new policy came into effect from May 11, following the Chief Minister's 2026-27 Budget speech.
Under the new structure, Indian Made Liquor (IML) slabs have been rationalised and reduced to 8.
Government-administered price fixation has been completely deregulated, allowing producers to place products within slabs based on alcohol content and market considerations.
The move aims to keep liquor prices lower and relatively equal to neighbouring states, including Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, and Kerala.