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Taxes Consume 70 Percent of Alcohol Price as ISWAI Urges Tax Rationalisation
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CNBC TV18•07-10-2026, 17:51
Taxes Consume 70 Percent of Alcohol Price as ISWAI Urges Tax Rationalisation
- •ISWAI CEO Sanjit Padhi stated that taxes make up 65 to 70 percent of an alcohol bottle's price in several states, and can reach up to 80 percent in some markets.
- •The industry has called on states to focus on generating higher revenues through premiumisation rather than repeatedly increasing tax burdens.
- •ISWAI estimates that India's alcoholic beverages market reached ₹6.2 lakh crore in 2025, driven significantly by growth in the premium segment.
- •The association is advocating for greater pricing freedom for premium products to encourage investment, innovation, and avoid delays from lengthy price controls.
- •The alcoholic beverages sector contributes around ₹4 lakh crore in taxes annually and supports approximately 144 lakh jobs across agriculture, F&B, and retail.
Key Questions Answered
Taxes account for 65% to 70% of the price of a standard ₹100 alcohol bottle across several states in India, and can reach as high as 80% in certain markets.
India's alcoholic beverages market reached an estimated ₹6.2 lakh crore in 2025, which represents a significant increase from ₹3.9 lakh crore in 2021.
The alcoholic beverages sector supports approximately 144 lakh jobs across various sectors, including agriculture, food and beverage, and retail.
