<p>Raising red flag against the West Bengal government’s proposed steep hike in liquor prices, the Indian alcoholic beverage industry has urged the state government not go ahead with the proposed excise policy which will kill the industry, leave thousands of people jobless and hurt government’s tax collections.<br /><br />In a joint representation to Chief Minister Mamata Banerjee, the two major liquor associations – Confederation of Indian Alcoholic Beverage Companies (CIABC) and International Spirits and Wines Association of India (ISWAI) -- said: “It is well known that the alcoholic beverage industry is facing an acute fall in sales volumes in West Bengal. Sales were down significantly in the light of the additional levy of VAT of 30% which was imposed after the Covid-19 pandemic broke out, consequently leading to a fall in tax revenues for the Government.”<br /><br />“Excise policy proposed by the West Bengal Excise Department on August 19, 2020, has created great concerns amongst companies. Industry fears that this policy will create undue disruptions and even possible job losses just before the peak Puja times. The proposed policy also uses a deeply flawed concept of inter-state price comparisons because the operating conditions vary considerably across states," CIABC Director-General Vinod Giri said.<br /><br />He pointed out that consumer price differences between West Bengal and the neighbouring states, which was already high after the imposition of VAT in April this year, will go up even further if this policy is implemented. State borders, not just in the East, but all across the country, tend to be porous and such high price differences will just incentivize cross-border smuggling of alcohol, most of it illicit, and even spurious. Further, such high consumer prices in the state will give rise to illegal and spurious manufacturers in West Bengal or neighbouring states, he said in a statement.</p>
<p>Raising red flag against the West Bengal government’s proposed steep hike in liquor prices, the Indian alcoholic beverage industry has urged the state government not go ahead with the proposed excise policy which will kill the industry, leave thousands of people jobless and hurt government’s tax collections.<br /><br />In a joint representation to Chief Minister Mamata Banerjee, the two major liquor associations – Confederation of Indian Alcoholic Beverage Companies (CIABC) and International Spirits and Wines Association of India (ISWAI) -- said: “It is well known that the alcoholic beverage industry is facing an acute fall in sales volumes in West Bengal. Sales were down significantly in the light of the additional levy of VAT of 30% which was imposed after the Covid-19 pandemic broke out, consequently leading to a fall in tax revenues for the Government.”<br /><br />“Excise policy proposed by the West Bengal Excise Department on August 19, 2020, has created great concerns amongst companies. Industry fears that this policy will create undue disruptions and even possible job losses just before the peak Puja times. The proposed policy also uses a deeply flawed concept of inter-state price comparisons because the operating conditions vary considerably across states," CIABC Director-General Vinod Giri said.<br /><br />He pointed out that consumer price differences between West Bengal and the neighbouring states, which was already high after the imposition of VAT in April this year, will go up even further if this policy is implemented. State borders, not just in the East, but all across the country, tend to be porous and such high price differences will just incentivize cross-border smuggling of alcohol, most of it illicit, and even spurious. Further, such high consumer prices in the state will give rise to illegal and spurious manufacturers in West Bengal or neighbouring states, he said in a statement.</p>
