26-06-2025
Karnataka halves excise licence renewal fees
Bengaluru: Facing strong opposition from liquor shop owners and industry stakeholders, the Government of Karnataka has decided to slash the proposed excise licence renewal fees by 50%. The earlier hike, which aimed to double the renewal fees from July 1, had triggered widespread backlash, with traders warning of state-wide protests and economic strain.
The government had initially increased the fees with an ambitious target of generating Rs879 crore in revenue for the state exchequer. However, the steep hike appeared to be a significant burden on licence holders across various categories, including bars, hotels, and retail liquor shops. As a result, several associations and stakeholders demanded an immediate revision. Under the previous proposal, CL9 bar and restaurant licences were set to rise from Rs8.62 lakh to Rs15 lakh, with an additional Rs2.25 lakh cess, bringing the total to Rs17.25 lakh. CL6A star hotel licences were revised from Rs9.75 lakh to Rs20 lakh plus Rs3 lakh cess, totaling Rs23 lakh. Similarly, CL7 boarding and lodging licence fees were raised from Rs9.75 lakh to Rs17 lakh, with Rs2.55 lakh cess, totaling Rs19.55 lakh.
With the revised order, the excise renewal fees across these and other categories will now be reduced by half, effective from July 1. The decision is expected to bring significant relief to the liquor industry.
