Indian liquor making companies have questioned the excise policies of the state governments. He says that governments are giving benefit to foreign liquor people, while the indigenous brands are charging more taxes and fees. Especially in brand registration fees and excise duty, indigenous companies are being discriminated against against foreign liquor. Such situations are making great difficulty for indigenous liquor makers.
The Confederation of Indian alcoholic beverage companies (Ciabc), an organization of foreign liquor companies in the country, have demanded change in excise policies from many states. Ciabc says that foreign liquor, which is packed in BIO (bottled in origin), is packed in our country itself and then imported with branding in India, low tax and low brand registration fees are levied. At the same time, Indian liquor makers have to pay more fees on these two, which makes their domestic market difficult and makes it difficult to compete. This inequality has become a big challenge for the indigenous liquor industry.
Excise duty doubles compared to foreign bio alcohol
Ciabc report says that the excise policies of many states like Maharashtra, Delhi, Kerala, Haryana, Odisha, Assam and Madhya Pradesh give more benefits to foreign liquor, while more strictness is taken with the native brands. For example, excise duty on indigenous IMFL in Maharashtra is doubled compared to foreign BIO alcohol. By 2021, the Maharashtra government used to impose 300 percent tax on BIO liquor, which was later reduced to half, but the native IMFL still levies 300 percent tax. This is causing a lot of trouble to the desi liquor makers.
According to Ciabc Director General Anant S Iyer, the premium is Rs 6,799 on the case of 750 ml of 750 ml of Amrit Fusion like Indian Single Malt Whiskey. At the same time, this duty on foreign brand Johnny Walker Black Label is just Rs 4,785. A similar situation is also in big cities like Delhi, where foreign liquor is sold less and it is sold cheaper.
Big difference in brand registration fees
Brand registration fees have also become a big problem for indigenous liquor makers. According to Ciabc, an Indian company has to spend from 8 lakh to 25 lakh rupees to register its brand. For example, in Delhi, there is a fee of Rs 25 lakh for the brand of whiskey and rum, Rs 15 lakh for beer and Rs 2 lakh for wine. At the same time, this fee for foreign BIO brands is only Rs 3 lakh per brand (a total of 1.5 million for 5 Spirit brands). Because of this, domestic companies are facing a tough competition in their domestic market.
Foreign alcohol will be more cheap
After the implementation of the new free trade agreements, there may be further decrease in customs and excise duty on foreign BIO alcohol. This will make foreign liquor more cheaper than Indian premium brands. Ciabc says that Indian premium and luxury brands are famous and award -winning worldwide, but here they are facing discrimination in tax and fees in the domestic market. This is a matter of great concern for indigenous liquor makers.