Bengaluru, May 17 -- Karnataka has become the first State in India to implement an Alcohol-in-Beverage (AIB) based excise duty structure, with the new policy coming into effect from May 11 this year.

The State Excise Department said the move follows the Chief Minister's 2026-27 Budget speech. The AIB-based structure is globally recognised as the gold standard for alcohol taxation.

Under the new policy, government-administered price fixation has been completely deregulated. Product placement within slabs has been left to producers based on market considerations.

As per the Government Notification issued on May 8, Indian Made Liquor (IML) slabs have been rationalised and reduced to 8.

The department said the move aims to ensure the avai...