Karnataka has implemented a groundbreaking Alcohol-in-Beverage (AIB) based excise duty structure, becoming the first state in India to adopt this globally recognized taxation standard. This new policy, effective from May 11, 2026, was introduced following the Chief Minister's Budget speech and aims to enhance affordability for consumers by reducing liquor prices. The state has deregulated price fixation, allowing producers to determine product placement within 8 newly rationalized Indian Made Liquor (IML) slabs based on market conditions. This shift is designed to ensure that liquor prices remain competitive with neighboring states such as Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, and Kerala. The Excise Commissioner's office has emphasized the need for public awareness regarding the new pricing and has requested the publication of revised Maximum Retail Prices (MRP) in major newspapers. This policy marks a historic change in the Indian liquor industry, promoting a market-driven approach while maintaining structured pricing for consumers.