Liquor makers urge Bengal govt not to implement proposed excise policy

The Indian alcoholic beverage industry requested West Bengal Chief Minister Mamata Banerjee not to make any changes in the tax structure during the current fiscal keeping in mind the industry is already been hit hard by Covid-19.

In a joint representation to Banerjee, the Confederation of Indian Alcoholic Beverage Companies (CIABC) and International Spirits and Wines Association of India (ISWAI) said that if the taxation structure changed just before the beginning of the Durga Puja festivities and other rules and regulations are changed, it would prove to be counter-productive both for the government and the industry.

The two industry bodies, which represent international and national spirits & wine companies, requested the Bengal government to delay the proposed taxation implementation beyond 2020 to avoid disruptions in the market as it would badly hit revenue generation. It has urged the state government to also consider recommendations of the industry bodies before implementing any policy.

“The State has already seen a 35% fall in volumes in the month of July-Aug, which could worsen going forward. We estimate 40-45% (for the entire year) fall on overall volumes if such a taxation structure is implemented in its current shape and form,” the joint representation to the Chief Minister stated.

“There are some serious gaps in the proposed taxation structure which need to be addressed before taking any decision. We request to allow ease of doing business, something that the state of West Bengal is successfully striving to enforce in all spheres," CIABC Director General Vinod Giri said.