NEWS: 11.94% increase in Excise revenue in Karnataka despite drop in beer sales

ABOUT

• Karnataka reported 94% increase in Excise revenue collection despite a steep drop in the sale of beer
• Attributed to a long spell of rain coupled with floods and a marginal dip in sale of Indian Made Liquor (IML).
• Beer sales declined steeply by 11.34% and IML sales declined marginally by 0.74% during 2025-2026.

Excise Revenue

• Excise revenueàincome earned by the government from taxes imposed on the manufacture and sale of goods like alcohol (beer, Indian Made Liquor, etc.) within the state.
• Indirect Tax → Paid by producers but passed on to consumers.
• State Subject → Alcohol taxation is under State List (Entry 51, Constitution).
• One of the largest sources of own tax revenue for states like Karnataka.