Mumbai/Thiruvananthapuram: The Kerala government’s decision to offer favourable tax treatment to imported brands has split the Indian alcoholic beverage industry, with local
distillers pointing out that the public exchequer could end up as the big loser. The domestic
liquor majors, under a new banner, said the tax sops to imports had upstaged the “level-playing field” prevailing in other Indian states.
Under the new tax regime for imported brands, Johnnie Walker Red Label (or any similarly priced drink) and a premium Indian whisky would retail at the same price of around Rs 1,950 after the excise duty and beverage corporation margins were adjusted to favour the former. A letter drafted by the recently-formed Federation of Alcoholic Beverage Producers (FABP India) to Kerala State Beverages Corporation, which operates both wholesale and retail trade in the state, expressed concern about the lower taxes and other concessions extended to imported liquor.
