News

INDIA: SWA chief attacks "Byzantine" alcohol duty structure in India

Most popular

Is craft spirits approaching a reset moment?

'Healthy alcohol - the trend to watch in 2019?

The beer category in 2018 - Review

The beer category in 2019 - just-drinks predicts

MORE

The chief executive of the Scotch Whisky Association has called for a more rational tax structure in India, attacking the country for its "Byzantine" state tax systems.

Speaking late last week at the IndSpirit drinks conference in Mumbai, Gavin Hewitt said that a rationalisation of excise duties across India's states "could bring considerable benefits for state governments, industry and consumers".

The SWA has long lobbied for harmonisation of taxes on imported spirits across India, where some states are charging as much as 550% in tax on foreign alcoholic beverages .

"I recognise that excise duty represents a very high percentage of state tax revenues in India," Hewitt told delegates at the conference on Friday (14 November). "But the vagaries of those state tax systems are Byzantine.

"A more rational tax structure might play neatly into the Federal Government's wish to see greater harmonisation of tax on alcohol at state level, matching the progress that has already been made in the VAT field. We believe that progress in these areas would bring additional revenue to state finances, create a transparent and fair playing field for all producers, and ensure consumers have a full choice of international and domestic brands at affordable prices."

Hewitt's comments echoed the sentiment of the president and managing director of United Spirits, Vijay Rekhi, earlier at the conference. Rekhi said in his speech to delegates: "In total, there are 119 different types of taxes on beverage alcohol across the country. There has to be a rationality in thinking.

"Where is the earthly sense in higher taxation of alcohol in one state compared to a lower rate in a neighbouring state? There needs to be a national consensus in policy."


Sectors: Spirits

Companies: Scotch Whisky Association

Related Content

Molson Coors chairman attacks Brewers Association for divisive language

Molson Coors chairman attacks Brewers Association for divisive language...

Low-, no-alcohol segment in need of

Low-, no-alcohol segment in need of "clarity and consistency" in UK - Portman Group...

India hiccups pull on United Spirits sales in FY fiscal-2017 - results

India hiccups pull on United Spirits sales in FY fiscal-2017 - results...

Anheuser-Busch InBev lifts lid on alleged price-fixing cartel in India - report

Anheuser-Busch InBev lifts lid on alleged price-fixing cartel in India - report...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?