Excise department likely to miss ₹43,000 crore revenue target in 2025-26
Bengaluru: The Karnataka Excise Department is almost certain to fall short of its ambitious revenue collection target for the financial year 2025-26. The department had been assigned a target of ₹43,000 crore for the current fiscal, but as of the end of February it has managed to collect only ₹36,492 crore, making it unlikely that the goal will be achieved within the remaining one month.
Initially, the state budget had fixed a revenue target of ₹40,000 crore for the Excise Department. However, the target was later revised upward to ₹43,000 crore. With only ₹36,492 crore collected between March and February, analysts believe it will be difficult for the department to bridge the large gap before the financial year ends in March.
In comparison, the department had collected ₹34,628 crore during the 2023-24 financial year. The figure increased slightly to ₹35,783 crore in 2024-25. Although a significant rise in revenue was expected in 2025-26, several factors — including increased liquor prices and consumers purchasing alcohol from neighbouring states — have impacted revenue growth.
Decline in liquor sales
Overall, liquor sales have seen a slight decline over the past two years. Sales of Indian Made Liquor (IML), which includes whisky, rum, gin and brandy, have dropped by about 0.51 percent compared to previous years. However, beer sales have witnessed a much sharper fall, declining by nearly 13.74 percent.
Frequent price hikes in liquor are being cited as one of the primary reasons for the drop in sales. Many consumers are reportedly shifting to cheaper alternatives or purchasing liquor from neighbouring states where prices are comparatively lower.
According to official figures, IML sales between March and February stood at 648.46 lakh boxes in 2023-24, with each box containing 8.64 litres. The sales marginally declined to 644.66 lakh boxes in 2024-25 and further dropped to 641.39 lakh boxes in the current financial year.
Beer sales witness sharp fall
Beer sales have recorded a more significant decline. Between March and February of 2023-24, about 397.92 lakh boxes of beer (each box containing 7.80 litres) were sold. The figure rose slightly to 411.37 lakh boxes in 2024-25. However, in 2025-26, beer sales have fallen sharply to 354.83 lakh boxes.
Price hikes help maintain revenue
Despite the fall in overall sales volumes, the state’s revenue from liquor has not been severely affected due to repeated price hikes. Alcohol brands commonly consumed by labourers and lower-income groups dominate the market, and significant price increases in these categories have helped balance the revenue flow.
A comparison of revenue collections between March and February shows steady growth. The state collected ₹31,276 crore in 2023-24 and ₹32,381 crore in 2024-25. In 2025-26, the revenue has already reached ₹36,492 crore, reflecting a growth of around 12.70 percent.
Liquor vendors to stage protest
Meanwhile, liquor vendors have announced a protest in Bengaluru on Thursday, demanding action against alleged widespread corruption in the Excise Department and seeking the fulfilment of several long-pending demands.
The protest has been called by the Federation of Wine Merchants Association Karnataka and will take place at Freedom Park from 12:30 pm. Vendors are expected to raise concerns over licensing issues, regulatory hurdles and alleged irregularities within the department.
