Karnataka's government has reduced its proposed excise license fee increase from 100% to 50% following intense opposition from liquor sellers. The Karnataka Liquor Sellers' Association had requested a moderate 20-25% hike, prompting Chief Minister Siddaramaiah to reconsider the original plan.

The revised rates, effective July 1, range from Rs 6 lakh for town panchayats to Rs 9 lakh for metropolitan corporations above 20 lakh population. The government also extended license renewal periods from one to five years, providing long-term relief.

This marks the first fee hike since 2016, expected to generate an additional Rs 300 crore annually for over 13,000 license holders statewide.

The beer industry has warned against further tax increases, citing three hikes in 18 months that have stagnated sales growth and threaten Rs 5,000 crore in brewery investments across Karnataka's 10+ facilities.