Wine, spirits importers looking forward to govt's duty cut
A liquor industry body has welcomed the government's plans to cut import duties on wines and spirits.
By PTI |
NEW DELHI: A liquor industry body has welcomed the government's plans to cut import duties on wines and spirits while allaying apprehensions that the move would hurt domestic manufacturers.
"This will bring imported and domestic products on an equal footing," International Spirits & Wines Association of India Secretary General Sunil Mehdiratta told PTI when asked about the government's proposed move to bring in a law for reducing high taxes imposed on imported alcoholic beverages.
Having exercised its only right and blocked formation of a WTO dispute settlement panel on a complaint by the European Union, India is planning to introduce a Bill in Parliament to reduce duties before a verdict is delivered by the panel.
Mehdiratta sought to dispel apprehensions that removal of additional customs duty (ACD) would hurt domestic industry.
"At present, around 97 per cent of Indian Made Foreign Liquor (IMFL) comes in the range of price of Rs 240 per bottle of 750 ML and it is the remaining three per cent of the market which would be under competition from imported of wines and spirits," he said.
"Last year, total sale of imported wines and spirits was only 10,000 cases valued at around 0.6 million. There is no threat from the imported wines to the domestic industry as projected by some industries," he asserted.
Mehdiratta said India imposes a basic customs duty of 100-150 per cent and additional customs duty (ACD) of up to 150 per cent on wines and spirits.
The total incidence of tax is between 250-550 per cent, depending on the import price thereby putting the imported wines and spirits at a disadvantage, he added.
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