Bengaluru, May 17 -- Karnataka introduced an Alcohol-in-Beverage (AIB)-based excise duty system, replacing its earlier bulk litre-based taxation model in what the state government described as the first such reform in India, which came into force on May 11.

It is intended to align liquor prices in Karnataka with those in neighbouring states while restructuring taxes according to alcohol content.

In a statement issued on Sunday, the Karnataka excise department said the move followed chief minister Siddaramaiah's 2026-27 budget announcement and was aimed at rationalising liquor pricing and making alcoholic beverages available at comparatively lower prices.

"For the first time in India, the AIB-based excise duty structure has been impleme...