Liquor in Karnataka faces highest taxation and least is in neighboring state of Goa
News: As per media sources, The International Spirits and Wines Association of India has estimated that a bottle of spirit (which means whisky, rum, vodka and gin) that costs Rs 100 in Goa can cost Rs 134 in Delhi and as much as Rs 513 in Karnataka. The vast difference in taxes is a reason for smuggling of alcohol across state borders.
Views: Hikes in Karnataka excise has led to ~83% tax on gross realisation for liquor companies. It has impacted volumes and also led to downtrading in consumption. Liquor companies such as USL, Radico continue to face challenging environment in the state.