CIABC has urged the Madhya Pradesh Government to review the total State-level tax and regulatory burden on Indian-made spirits and Bottled-in-Origin products at comparable price points and correct any unjustified disparities.
Imported liquor may be getting cheaper in Madhya Pradesh, but the price cuts have raised concerns among Indian alcoholic beverage manufacturers, who fear that cheaper imports could put domestic brands in the premium and above categories in IMFL and Wines at a disadvantage.
CIABC in a statement has sought equitable, predictable excise policy framework; Atmanirbhar Bharat and Viksit Bharat must translate into fair treatment for Indian manufacturing
According to Confederation of Indian Alcoholic Beverage Companies (CIABC), the apex body of Indian alcobev manufacturers: “Indian premium spirits have already demonstrated their ability to compete internationally on quality. The domestic brands competing with imported Scotch in the premium and above segments include award-winning single malts and luxury spirits recognised by international judges.”
“Manufacturers must continue improving quality and production efficiency. However, manufacturing efficiency cannot correct an imbalance created by taxation. A comparison based solely on shelf prices is incomplete without examining the total state duties, fees and regulatory costs applicable to comparable Indian-made and imported products. Where policy creates a disadvantage for domestic manufacturing, correcting it requires action by the Government,” CIABC noted.
CIABC further said expecting Indian manufacturers to offset an unequal tax burden simply by reducing production costs risks squeezing the investment in maturation, technology and skilled people that premiumisation requires. The policy objective should be to encourage manufacturers to keep investing in better products while ensuring that their competitiveness is assessed under equitable conditions.