LONDON DELHI TALK TO OUR TEAM NEWSLETTER SIGN-UP LOGIN WHAT WE OFFER EVENTS WHAT WE SAY OUR MEMBERS ABOUT US CONTACT US Home / News Archive / UKIBC welcomes curb on imported liquor tax in the State of Maharastra and West Bengal UKIBC WELCOMES CURB ON IMPORTED LIQUOR TAX IN THE STATE OF MAHARASTRA AND WEST BENGAL BY SHUBHI MISHRA 24 NOV 2021 RECENT YEARS HAVE SEEN SIGNIFICANT UK INVESTMENT IN THE DOMESTIC SPIRITS SECTOR IN INDIA, WITH BRITISH COMPANIES SUPPORTING INNOVATION, VALUE CREATION, AND DRIVING THE GLOBALISATION OF ICONIC INDIAN BRANDS. The Seventh Schedule to the Indian Constitution grants exclusive powers to State Governments to regulate alcohol, levy excise duty on its production, and the powers to tax the sale of alcohol, resulting in over 30 unique sets of laws governing the production, distribution, and sale of alcohol. To make, move, and sell alcoholic beverages in India, companies must obtain licenses, approvals, and permits at every stage of the process starting from manufacturing, to transport, storing and selling, and the payment of duties and levies. A recent announcement from States of Maharastra and West Bengal have reduced State taxes for alcoholic beverages making several brands more accessible to the end consumers. Such progressive decisions by the two State Governments will help to ensure the integrity of the marketplace by enhancing the operating conditions for legitimate quality products of the highest standards produced by both domestic and international players. Maharastra The State is an economic and industrial powerhouse with a significant premium purchase trend. Yet, although already successful, the State is not resting on its laurels. It is aiming to be a trillion-dollar economy in its own right by 2025. The State’s strategy includes developing better industrial and urban infrastructure, simplifying the regulatory environment, and constructively engaging in a two-way dialogue with business. A recent example of how business to government engagement can go well is the announcement from the Maharastra Government to slash excise duty on imported liquor. The State Government took this step to curb inter-state smuggling and bring the prices of imported liquor on par with those of other states. State Government officials say the measure was expected to increase the government’s revenue by Rs 150 crore in a year. They stated that excise duty on imported whisky, brandy, rum, and vodka has been brought down from 300 percent to 150 percent of the manufacturing cost. The excise reduction will apply only to imported liquor brands bottled and packed in the country of origin (BIO), and not to those international brands that are bottled in India. It also does not apply to Indian Made Foreign Liquor (IMFL) brands. The new excise rates have come into effect from the date of the notification, on November 18, 2021. West Bengal While signing our MOU in September 2020, the UKIBC and the Government of West Bengal were looking for a collaborative partnership to boost business and industrial development in the state by proactively developing the business environment and strengthening collaboration with British businesses in West Bengal. UKIBC welcomes the call of the West Bengal Government to reduce taxes on alcoholic beverages, which lowers down the prices of all liquors as a result. India-made foreign liquor (IMFL), bottled in origin (BIO), overseas spirits bottled in India (OSBI), and wine are dropping by 20-40 percent. Prices of beer dropped by 5-6 percent. The net effect of the changes has resulted in lower MRP in the state even as a special purpose fee is being charged to promote responsible drinking. The said announcement displays the dynamism and determination of the political and bureaucratic leadership. Liquor prices in the state had shot up by 40-90 percent across brands in the financial year 2020-21 through a series of tax rate changes as the government scrambled to find ways to shore up revenue to combat the impact of the COVID-19 lockdown. The motive behind this action is to put an end to smuggled, illicit, and spurious liquor products and increment in the state revenue. SHARE THIS PAGE WITH YOUR COMMUNITY RELATED ARTICLES 30 NOV 2021 | BY PRASENJIT DHAR The journey to achieving net zero in India by 2070 29 NOV 2021 | BY KEALAN FINNEGAN India Parliament Winter Session begins 25 NOV 2021 | BY UK INDIA BUSINESS COUNCIL (UKIBC) UKIBC, NASSCOM and techUK develop joint position paper to drive growth in digital and IT sectors 16 NOV 2021 | BY KEALAN FINNEGAN UKIBC submits recommendations on behalf of members for India Budget 2022 MORE ARTICLES GET A FREE CONSULTATION WITH ONE OF OUR INDIA ADVISERS IN THIS SECTION ANNOUNCEMENTS BLOGS CASE STUDIES FEATURES HOW TO GUIDES NEWS PRESS RELEASES QUICK GUIDE GET A FREE CONSULTATION WITH ONE OF OUR INDIA ADVISERS LATEST NEWS 30 NOV 2021 The journey to achieving net zero in India by 2070 29 NOV 2021 India Parliament Winter Session begins 25 NOV 2021 UKIBC, NASSCOM and techUK develop joint position paper to drive growth in digital and IT sectors 24 NOV 2021 UKIBC welcomes curb on imported liquor tax in the State of Maharastra and West Bengal MORE NEWS LATEST REPORTS 01 OCT 2021 UK-India Climate Change Cooperation: Supporting Indian SMEs To Go Green 20 SEP 2021 Road to a UK-India FTA: Consulting UK Businesses on Doing Business in India 29 JUN 2021 Road to a UK-India Free Trade Agreement: Enhancing the Partnership and achieving Self-Reliance MORE REPORTS IMPORTANT INFORMATION This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this resource without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this resource, and, to the extent permitted by law, the authors and distributors do not accept or assume or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Copyright 2015. All rights reserved. IN ASSOCIATION WITH ACCREDITED BY QUICK LINKS Business Setup Introductions Market Research Launchpad Service Directory India Guide Events Vacancies CONTACT US London (Head Office) UK India Business Council 105 Victoria Street London SW1E 6QT UK +44 (0)20 7592 3040 enquiries@ukibc.com New Delhi UK India Business Council WeWork DLF Forum, Cyber City Phase III, Sector 24 Gurugram 122002 Delhi-NCR CIN: U74110HR2008PTC056054 +91(0) 124 502 6059 enquiriesindia@ukibc.com Helpline +44 (0)20 7592 3040 For any queries or grievances please contact Megha Gupta on megha.gupta@ukibc.com Follow us © 2021 UK India Business Council. All Rights Reserved Disclaimer Accessibility Privacy & Cookies WordPress website by Moove Agency