The Karnataka government has reduced the proposed tax hike on wine from 177 per cent to 59 per cent. New tax structure for the excise year beginning July 1 was notified in the gazette on June 22. The reduction in tax has brought some relief to local wine producers and grape growers, said P L Venkatarama Reddy, president of Karnataka State Wine Producers Association and Narayanaswamy of Bangalore Grape Growers Association.