Karnataka caps liquor licence fee hike at 50%

The Karnataka government has officially capped the proposed hike in liquor licence fees at 50 percent, scaling down from its earlier draft that suggested a 100 percent increase. The revised rates will come into effect from July 1, 2025.

The move follows strong opposition from industry stakeholders after the draft notification was issued on May 15. Liquor dealers had raised objections and met Chief Minister Siddaramaiah and officials from the finance department, urging the government to reconsider the steep hike.

According to the final notification, the annual licence fee for hotel bars in city corporations with a population of over 20 lakh will increase from ₹8.5 lakh to ₹12.75 lakh. Similarly, licence fees for clubs (CL-4), retail shops (CL-2), and bars and restaurants (CL-9) will also be increased by 50 percent. The licence fee for distilleries and warehouses will rise from ₹45 lakh to ₹67.5 lakh, while breweries will face a similar 50 percent hike.

In addition to the revised fee structure, the notification also extends the regulatory inspection period for alcohol-selling establishments from one year to five years, offering relief in terms of administrative frequency.