Bengaluru, 26 June

The government on Thursday scaled back its proposed hike in excise licence renewal fees, opting for a 50 per cent increase instead of doubling the charges, following strong opposition from liquor sellers.

In a move welcomed by industry stakeholders, the government also extended the licence renewal period from one year to five years. The revised fees will take effect from 1 July.

After considering objections, the government issued a fresh order, settling on a 50 per cent hike.

The original draft notification, issued on 15 May, had proposed a 100 per cent hike across excise licence categories to bolster state revenue. However, representatives from the Karnataka Liquor Sellers’ Association and others met Chief Minister Siddaramaiah to urge a more moderate increase of 20–25 per cent.

This is the first fee hike since 2016, with previous proposals stalled due to consistent industry pushback. The revised structure is expected to generate an additional ₹300 crore in annual revenue.

B. Govindaraja Hegde, General Secretary of the Karnataka Liquor Sellers’ Association, welcomed the move, particularly the extension of licence validity. He added that the association has requested the option to pay fees in instalments, to which the government may respond favourably.

Over 13,000 licence holders across the state will need to renew at the updated rates as the new excise year begins on 1 July.

The new annual renewal fees are based on the population:

•           Rs 9 lakh for metropolitan corporations with populations over 20 lakh.

•           Rs 7.5 lakh for other metropolitan areas.

•           Rs 6.75 lakh for municipal corporations.

•           Rs 6 lakh for towns, municipalities, and town panchayats.

•           Fees for other regions will vary depending on population.

In addition to retail licence revisions, the government has also raised fees for various excise categories:

•           Distillery & brewery: Rs 1.5 lakh

•           Craft brewery: Rs 25,000

•           Fortified wine production: Rs 25,000

•           Distillery & warehouse: Rs 67 lakh

•           Bar charter at international airports: Rs 18.75 lakh