Bengaluru: Karnataka’s per-capita consumption of pure alcohol declined 2.4% in the May-Sept period in a strong indication that alcohol-in-beverage taxation was helping the government raise revenue and encouraging a shift towards drinks with lower alcohol content.According to Brewers Association of India (BAI), consumption of pure alcohol per person fell to 1.59 litres between May and Sept 2026, compared with 1.63 litres in the corresponding period last year. The state’s excise revenue rose 13.4% year on year to Rs 22,191.63 crore during the April-Sept period.Karnataka introduced Alcohol-in-Beverage (AIB) taxation on May 11, under which taxes are linked to the quantity of alcohol contained in a beverage. The change has prompted both consumers and manufacturers to shift towards lower-strength drinks, BAI said.Beer and wine now account for 45% of total alcoholic beverage sales, up from 36% a year earlier. At the same time, several manufacturers of economy Indian-made foreign liquor (IMFL) have reduced the alcohol strength of their products from 42.8% to 40%.Consequently, the average alcoholic strength of IMFL sold in Karnataka has fallen to 40.5%, according to the association.“There are several global precedents for a rapid reduction in alcohol consumption after taxes are linked with alcohol content. Still, the speed at which it has fallen in Karnataka is impressive,” said Vinod Giri, director general of BAI.The association said that while the volume of alcoholic beverages sold increased 16%, the quantity of pure alcohol contained in those beverages declined 2.4%. IMFL case sales grew 1.1% during April-September, compared with a 1% decline in the corresponding period last year.
