Low-end foreign liquor is costlier

NEW DELHI: The euphoria of getting imported liquor at a more affordable price after a cut in basic custom duty in the Budget is shortlived. With introduction of four slabs of additional duties, imported whisky at lower range will be costlier.
Instead of two slabs of additional duties till now, the Budget has increased them to four. Imported whisky in the range of Rs 600-1,000 will now cost 25-40 per cent more, says Dinesh Jain, MD of Highland Distillers.So, consumers’ expectations of getting more affordable imported whisky will be belied, he adds.
Till the Budget, additional duties were kept at 75 per cent for a case costing less than $ 25 (CIF price; 12 bottles of 750ml) and 50 per cent for one costing over $ 25.
The new four slabs are 150 per cent (for case costing less than $ 10), 100 per cent (for case costing between $ 10-20), 50 per cent (for $ 20-40) and 25 per cent (for over $ 40). In the first two slabs, additional duty will more than offset the cut in basic custom duty from 182 per cent to 166 per cent. So in the Rs 600-1,000 retail price range (brands like Claymore, Grand McNish), the price will appreciate, says an industry player.
However, there will be a price reduction in the premium range (over Rs 3,000, brands like Macallan, Black Label, Chivas Regal) to the extent of 15-20 per cent. And in the Rs 1,500-3,000 range (like Famous Grouse, Red Label, Cuty Surk), there will be a marginal price cut of around 5 per cent. While multinational liquor firms are not happy with this new duty structure where prices in the lower mass consumption level will go up, domestic manufacturers are happy.
Recast of additional duty into four tiers will ensure a level playing field between Indian and foreign liquor manufacturers, says Anant Iyer, V-P of UB group.