Union Budget 2025 | Expecting reduction in relatively high excise duty, says Associated Alcohols & Breweries Limited's Tushar Bhandari

The duty levels at present should be maintained to protect the local manufacturers from cheaper imports., Bhandari says.

Union Finance Minister Nirmala Sitharaman is expected to present the Union Budget on February 1, Saturday. Along with other industries, the alcobev sector is also expecting for some financial burden relief from the Centre.

Associated Alcohols & Breweries Limited's Tushar Bhandari says, "With the Indian alcobev industry brimming with potential and new players emerging, the Union Budget 2025-26 should be aligned towards policies that will reduce financial burdens and drive growth. An important expectation would be the reduction in the relatively high excise duty, which severely impacts the cost structures of the manufacturer. It is also crucial that liquor comes under GST so that tax inefficiencies are eradicated. Presently, liquor exclusion prevents companies from availing of GST credits on packaging materials, driving up production costs," he says.

Speaking on the import duty levels, Bhandari adds," The duty levels at present should be maintained to protect the local manufacturers from cheaper imports. In addition, the regulatory measures should be streamlined so that state policies are harmonized and tax issues that cause disruptions and deter investment are resolved. All these will benefit domestic manufacturers while attracting foreign and domestic investors, leading to long-term growth and innovation in the industry."