The Karnataka government has raised the fees for liquor licenses and taxes. Many local alcohol makers are unhappy and say they might have to leave the state. Nearby states like Andhra Pradesh are offering better conditions to attract these businesses, as reported by MoneyControl.

After complaints, the government cut the fee increase from 100% to 50%. The new fees will start on July 1.

A local rum company from Mysuru said the higher fees make it hard for them to stay. They are thinking about moving to other states like Goa or Maharashtra. Andhra Pradesh has also contacted them to offer better rules and support.

Small alcohol makers will have a hard time because the fees are now very high. The government has also raised the prices of beer and cheap Indian liquor four times in two years.

This is not the first problem between the government and alcohol makers. Last year, the government stopped night work at some breweries but later changed the rule after protests.

Liquor taxes give the Karnataka government about 20% of its total income. This shows the business is very important for the state.