Do not reduce import duty on liquor: Industry asks Centre

The Confederation of Indian Alcoholic Beverage Companies (CIABC) has written to Union Commerce and Industry Minister Piyush Goyal asking him not to go ahead with the proposal to reduce Basic Customs Duty (BCD) on alcoholic beverages on products imported from the UK.

“The Government of India is considering a reduction in Basic Customs Duty (BCD) on alcoholic beverages as part of its negotiation with the Government of UK...Any reduction in BCD must be gradual in a controlled manner in order to provide reasonable protection to Indian companies against predatory imports, give level playing field against Western firms, and help Indian products achieve global scale and success," CIABC has said in its letter to the Minister.

Stressing that the Indian alcoholic industry was not against the reduction, CIABC Director General Vinod Giri said, “We have been urging the government to ensure a level playing field to Indian alcoholic beverages industry and ensure its survival and growth. Any reduction in BCD should be done in a phased manner to allow Indian companies time to prepare and build own competitiveness.”

In its representation to Goyal, CIABC has demanded that the BCD should be reduced to a level in line with average prevailing duties in ASEAN countries.

“To prevent dumping and predatory pricing against mainstream Indian products, products below a certain import price (threshold import price) should be taxed at the threshold import price rate only irrespective of actual import price,” it stated.