Karnataka links liquor tax to alcohol content

Bengaluru: The Karnataka government has introduced a new excise policy that taxes drinks based on the amount of alcohol in them, in what it calls the first such move in the country.

While consumers can say three cheers as beer gets cheaper, the new tax regime has upset local distillers as they fear sales will plummet.

Under the new policy, the government has introduced complete deregulation in pricing decision. In its statement, the excise department said that placing products inside the signs was left to the manufacturers in line with market assessments.
It was stated that the number of slices for Indian-made liquor has been reduced by half to eight, considering that the liquor can be offered to consumers at cheaper prices.