Liquor bodies write to Bengal govt on price concern

KOLKATA: International Spirits and Wines Association of India (ISWAI) and the Confederation of Indian Alcoholic Beverage Companies (CIABC), who account for most of the branded liquor industry in India between them, including Diageo, Perno Ricard and Radico Khaitan, have submitted a joint representation to the state about the concerns of liquor companies following the proposal of a new tax regime.
They have written to the chief minister and the finance minister, with copies sent to the additional chief secretary finance and the excise commissioner.

CIABC and ISWAI have pointed out that under this proposed policy, consumer prices of fast-moving brands will go up substantially — translating to a rise of Rs 150 to Rs 450 per bottle — as a consequence of the changes in taxation and trade margins.
CIABC director general Vinod Giri said, “The Bengal government is one of the most progressive and business friendly in the country. Its liberal and forward-looking excise policy has allowed alcoholic beverage companies to prosper here and contribute towards tax revenues and financial health. In this context, the industry considers it its duty to highlight pitfalls of the proposed policy that, if implemented in the current form, will lead to a great loss to all stakeholders.”
“It is frightening to envisage what further hiking of taxes on spirits will do to liquor sales in the state and to the government’s tax collections. Consumer price differences between Bengal and neighboring states will go up if this policy is implemented. This will give rise to illegal manufacturers,” it added.
An ISWAI spokesman said, “Historically, the state has been very supportive of the industry. We hope that our views will get due considerations and the proposed policy will be revised.”