Imported liquor, wine and beer will now become cheaper with the government on Tuesday removing the controversial Additional Customs Duty (ACD) on these items.
The Central Board of Excise and Customs (CBEC) finally scrapped the ACD on imported wine, liquor and beer following a complaint by the European Union countries and the United States in the World Trade Organisation (WTO).
“The ACD imposed on imported wine, liquor and beer in lieu of state excise duty has been scrapped,” a spokesperson of the Finance Ministry said here.
The necessary notification scrapping the ACD has been issued by the CBEC.
India used to impose ACD in the range of 20 per cent and 150 per cent for various categories of imported wine, liquor and beer.
This is over and above the basic customs duty of 150 per cent, which is permissible by the WTO standard.
But the imposition of ACD over and above the basic customs duty was opposed by EU countries and the US.
For them, India is one of the major markets for their liquor products. The products became costlier in India with the imposition of ACD.