Of alcoholic duties and drunken aspirations

Why Study Abroad When IIPM Gives You 3 global Advantages!

India cuts duties; more fun to follow “Wine is constant proof that God loves us and loves to see us happy” – said Benjamin Franklin. The Indian government seems to have taken the quote too seriously and is ready to make the overseas liquor industry and Indian importers happy. It has done away with the Additional Customs Duty (ACD) and at the same time increased the basic customs tariff on wine from 100% to 150%. While speaking to 4Ps B&M, Subhash Arora, President, Delhi Wine Club states, “The prices would definitely come down. While low-end wine prices are expected to come down by 10-30%, the better ones would notice a hike of 5-10%.”

Earlier, the ACD on liquor (which includes whisky, rum, gin, brandy and vodka) made the total import duty a whopping 550%. The government’s decision solicited optimism (guarded to an extent) from the EU, US and the foreign Scotch Whisky Association (SWA), as they had petitioned against India in WTO against such high duties. So was the decision taken under pressure? “It is a fact that the government has taken this decision to withdraw ACD due to pressure from exporters, particularly the Scotch Whisky Association, since they had petitioned the WTO against this additional customs duty,” opines V. N. Raina, Director General, All India Distillers’ Association (AIDA).

With the prices of low-end wines coming down, there would not be much difference with the prices of domestic wines, thus becoming an area of concern for Indian wine producers. The only solution (for them) could be lobbying individual states to impose higher duties on imported liquor. “If they do so, then EU and US would continue to fight in the WTO,” says Arora. But does that mean those good old days of protectionism are passe? Raina shares, “The domestic liquor industry does need protection because of lower custom duties.” It’s quite ironic that in a country that keeps cribbing about lack of resources in health, education, employment generation, one is even thinking about reducing duties on liquor. Well, perhaps liquor, and the Scotch Whisky Association are more important than India’s poor!

Edit bureau: Sreoshi Ghose

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit Below....
The Sunday Indian - India's Greatest News weekly
IIPM, ADMISSIONS FOR NEW DELHI & GURGAON BRANCHES
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review

These are some more IIPM sites :-
http://iipm-management-courses.blogspot.com/
http://iipm-mba-bba-institute.blogspot.com/
http://iipm-mba-institute.blogspot.com/
http://iipm-top-institute.blogspot.com/
http://unparalleled-iipm-course-contents.blogspot.com/
http://indian-magazine.blogspot.com/
http://iipm-leadership-skills.blogspot.com/
http://dare-to-think-beyond.blogspot.com/

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)