NewsFlash Daily™
29 May 
Consumers accuse bars and wine stores of charging old prices despite the Karnataka government reducing rates on premium liquor and beer
Bengaluru: Massive outrage has erupted among liquor consumers across Karnataka after several bars, restaurants, and wine stores were accused of selling premium liquor and beer at old prices despite a recent reduction in rates under the state government’s revised excise taxation policy.
The controversy surfaced after the Karnataka government introduced a new Alcohol-in-Beverage (AIB) taxation system that imposes taxes based on the alcohol content in beverages. Under the revised structure, alcoholic drinks with higher alcohol concentration attract higher taxes, while beverages with lower alcohol content receive tax relief.
As a result, prices of several premium liquor brands, including whisky, gin, tequila, and beer, reportedly dropped between 5 per cent and 24 per cent. However, consumers allege that many liquor outlets are continuing to charge customers based on older Maximum Retail Prices (MRP), denying them the benefits of the revised pricing structure.
Karnataka New Liquor Tax Policy Triggers Market Confusion
The Karnataka government implemented the revised excise taxation framework from May 11, significantly reducing the number of excise slabs from 16 to 8. Officials claimed the move was aimed at simplifying taxation and restructuring alcohol pricing across categories.
While premium alcohol brands became cheaper under the new taxation policy, several regular and lower-end liquor brands consumed largely by middle-class and lower-income groups reportedly became more expensive.
The uneven impact of the pricing structure has already triggered criticism, but fresh allegations against bar owners and wine merchants have intensified public anger.
Bars and Wine Stores Accused of Charging Old MRP
Consumers claim that despite the official reduction in prices of premium alcohol brands, many bars and liquor stores are still displaying older bottle labels carrying higher MRPs and collecting the same inflated rates from customers.
At the same time, for liquor brands whose prices increased under the revised tax system, retailers are reportedly charging the new, higher prices even when bottles still carry older, lower-rate labels.
The alleged double standards have led to widespread accusations of consumer exploitation and unfair trade practices in the state’s liquor market.
Consumers Demand Strict Action Against Liquor Retailers
Several customers, including Mahesh, Sharanu, Sunil Kumar, and Shivanna, strongly criticised the alleged malpractice by liquor retailers and bar owners.
“Liquor whose prices have dropped is still sold at old, higher rates, while brands whose prices increased are immediately sold at revised, higher prices. This is direct cheating of consumers,” angry customers alleged.
Consumers have also accused authorities of failing to monitor the implementation of the revised pricing system effectively, allowing retailers to exploit loopholes for additional profits.
Excise Department Faces Pressure Over Enforcement
Public pressure is now mounting on the Karnataka Excise Department to launch inspections and take strict legal action against bars, restaurants, and wine stores violating revised pricing norms.
Many consumers are demanding transparent display of updated MRPs, stricter monitoring mechanisms, and penalties against outlets found overcharging customers despite government-notified price reductions.
The controversy has once again highlighted growing concerns over enforcement failures in Karnataka’s liquor retail sector and the lack of consumer protection mechanisms in alcohol pricing regulation.
