The domestic liquor manufacturers have urged the new BJP Government in Odisha to end discrimination against Indian alcoholic beverage products by withdrawing special tax concessions given to the foreign brands by the previous Government and allowing them a level playing field.
The Indian liquor-makers have requested Chief Minister Mohan Charan Majhi to take forward the mission of Prime Minister Narendra Modi of ‘Atmanirbhar Bharat’ and ‘Make In India’ initiatives in the alcoholic beverage industry too by supporting the domestic liquor industry.
The Confederation of Indian Alcoholic Beverage Companies (CIABC), the apex body of domestic liquor manufacturers, is peeved over the fact that imported liquor – whisky, gin, brandy, vodka, wines etc – are being taxed less compared to premium Indian brands, thus giving imported brands undue advantage.
It was in 2022-23, the previous State Government had reduced excise duty on all imported alcohol in the state, but did not cut duties on Indian made liquor.
The domestic manufacturers are hoping that the BJP Government in the state will end this anomaly and provide a level playing field to the domestic players.
“We have recommended to the Odisha government, to end discrimination against Indian products, particularly against premium and luxury Indian products such as single malt whiskies, blended Indian whiskies, gins and rums,” said Anant S Iyer, Director General, CIABC.
“The State Government should charge excise duty at reduced rates harmonious with the state duties charged for Bottled In Origin (Foreign Liquor) in the larger interest of protecting and promoting Made in India liquor (IMFL).”
“Notably, the cost of making liquor in India is 50-75 per cent more compared to Europe and other countries, mainly due to difference in cost of raw material and cost of capital. Further our cost of production is higher. Hence, the Indian industry is seeking a level-playing field vis a vis foreign players,” he added.
Iyer further noted that with the Indian Government currently negotiating FTAs with various countries, customs duty on imported alcoholic beverage products produced outside of India is going to reduce further and consequently make the imported Bottled in Origin (BIO) foreign liquor cheaper.
“This will further create a price disadvantage for Indian products. Therefore, we have requested the State Government to rationalise duties and taxes on Indian-made premium products to have an equitable treatment with imported foreign liquor (BIO). A balanced price indexing of brands based on the segment they operate will allow consumers to make a discerning choice,” he said.
“The Union Government is advocating “Vikshit Bharat” and improving Indian Industry’s ease of doing business through its “Atmanirbhar” intent and various other progressive policies.
We are sure that the State Government too is aligned to the same thought process through its “Utarksh Odisha” policy initiative.
Hence, we urge the State Government to support the Indian alcoholic beverage industry. It is important as the industry supports over 50 lakh farmers and employs over 20 lakh workers across India and in Odisha.
Moreover, the industry generates substantial revenue year on year to the government. Our industry is a major contributor to the economy, and therefore, needs to be strengthened,” said the CIABC DG.
