Delhiites high on imported booze after customs cut
With sales of imported whisky brands in Delhi-NCR up 45% from last year, it’s retailers that are cheering.
By Ratna Bhushan, TNN |
NEW DELHI: Delhiites are queuing up for their shots of Johnnie Walker, Jack Daniel’s and Chivas Regal like never before and for once, it’s not the bootleggers who are raising a toast.
With sales of imported whisky brands such as Jack Daniel’s, Johnnie Walker Black Label, Johnnie Walker Red Label and Chivas Regal in Delhi-NCR up 45% compared to the same period last year, it’s retailers that are cheering.
The central government’s decision to lower customs duties on imported spirits earlier this summer, followed by the Delhi government’s decision not to hike excise duty ahead of the festive season, has, for the first time, resulted in a 20-25% shift away from the bootlegger market in favour of retail channels in the Delhi-NCR.
“This is for the first time ever that the bootlegger market has been hit; the Delhi Government is benefiting from imported spirits sales for the very first time,” International Spirits & Wine Association of India (ISWAI) Chairman and Brown-Forman Area Director Amrit Kiran Singh said.
On average, the gap between the bootlegger price and the legal price of scotch whiskies has narrowed down considerably, with most Scotch whisky majors such as Brown-Forman, Diageo and Pernod Ricard dropping prices of their brands by about 10-30%.
The price for a 750-ml bottle of Jack Daniel’s, for example, is now at Rs 1,750 as opposed to Rs 2,000 earlier.
Brands such as Jack Daniel’s, Johnnie Walker Black Label, Johnnie Walker Red Label and Chivas Regal put together account for close to three-fourths of imported whisky sales in Delhi and across the country.
In June this year, the central government brought down additional customs duties from 225% to 150% for premium imported spirits, following which the industry began lobbying with state governments not to hike excise duties.
While Delhi decided to maintain an excise duty of Rs 300 a bottle, Maharashtra, on the other hand, was the only state that had decided to hike excise duties on high-end imports. However, last month, the Maharashtra government revised its duty structure on imported spirits and wines, as part of which, the special fee on high-end imported spirits was brought down from 200% to 75%. “It was the buoyancy in the Delhi market that triggered the Maharashtra Government’s decision to revise its duty structure,” Mr Singh said.
“This is a good beginning but ideally, duties on imported spirits should be brought down further, and we will lobby for the duties to be brought down to 100%. In fact, brands such as Jack Daniel’s should be retailed between Rs 1,200-1,400 a bottle,” Mr Singh added.
With sales of imported whisky brands such as Jack Daniel’s, Johnnie Walker Black Label, Johnnie Walker Red Label and Chivas Regal in Delhi-NCR up 45% compared to the same period last year, it’s retailers that are cheering.
The central government’s decision to lower customs duties on imported spirits earlier this summer, followed by the Delhi government’s decision not to hike excise duty ahead of the festive season, has, for the first time, resulted in a 20-25% shift away from the bootlegger market in favour of retail channels in the Delhi-NCR.
“This is for the first time ever that the bootlegger market has been hit; the Delhi Government is benefiting from imported spirits sales for the very first time,” International Spirits & Wine Association of India (ISWAI) Chairman and Brown-Forman Area Director Amrit Kiran Singh said.
On average, the gap between the bootlegger price and the legal price of scotch whiskies has narrowed down considerably, with most Scotch whisky majors such as Brown-Forman, Diageo and Pernod Ricard dropping prices of their brands by about 10-30%.
The price for a 750-ml bottle of Jack Daniel’s, for example, is now at Rs 1,750 as opposed to Rs 2,000 earlier.
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Brands such as Jack Daniel’s, Johnnie Walker Black Label, Johnnie Walker Red Label and Chivas Regal put together account for close to three-fourths of imported whisky sales in Delhi and across the country.
In June this year, the central government brought down additional customs duties from 225% to 150% for premium imported spirits, following which the industry began lobbying with state governments not to hike excise duties.
While Delhi decided to maintain an excise duty of Rs 300 a bottle, Maharashtra, on the other hand, was the only state that had decided to hike excise duties on high-end imports. However, last month, the Maharashtra government revised its duty structure on imported spirits and wines, as part of which, the special fee on high-end imported spirits was brought down from 200% to 75%. “It was the buoyancy in the Delhi market that triggered the Maharashtra Government’s decision to revise its duty structure,” Mr Singh said.
“This is a good beginning but ideally, duties on imported spirits should be brought down further, and we will lobby for the duties to be brought down to 100%. In fact, brands such as Jack Daniel’s should be retailed between Rs 1,200-1,400 a bottle,” Mr Singh added.
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