Rationalise high excise duties on alcohol beverages: Iswai to state govts

ISWAI, which represents the imported premium portfolio of spirits and wine brands in India, on Monday urged state governments to rationalise high excise duties.

The International Spirits & Wines Association of India (ISWAI) said manufacturers of alcohol beverages (Alco-Bev) are facing shrinking margins due to high discriminatory taxes, along with soaring inflation and import tariffs.

It has urged regulators to consider an "inflation-linked model that will bring much-needed transparency and a consistent approach to state supplier pricing", said a statement from ISWAI.

In some states, excise duties account for 70-80 per cent of the Maximum Retail Price (MRP), it said, adding that inflation is putting additional pressure on the industry.

"As inflation rates rise in the country, the Alco-Bev sector faces significant challenges due to escalating costs of production, transportation, raw materials, and exorbitant import duties. This combination poses a dire threat to the industry's sustainability," it said.

It has suggested a uniform inflation-linked supplier pricing model for the industry and rationalisation of ad hoc levies and taxes imposed by state governments.

"ISWAI believes these steps will stimulate economic growth," it said, calling for "a collaborative outlook between industry stakeholders and policymakers to ensure the continued prosperity of the Alco-Bev sector and its contribution to the Indian economy".

ISWAI members include global Alco-Bev players such as Bacardi, Beam Suntory, Brown-Forman, Campari Group, Diageo-United Spirits, Moet Hennessy, Pernod Ricard, and William Grant & Sons.