ISWAI Calls for Rationalisation of High Excise Duties on Imported Spirits and Wines

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The International Spirits & Wines Association of India (ISWAI), representing the imported premium portfolio of spirits and wine brands in India, has urged state governments to rationalize high excise duties. The association highlighted the challenges faced by alcohol beverage manufacturers due to shrinking margins resulting from discriminatory taxes, soaring inflation, and import tariffs.

Impact of High Excise Duties

ISWAI pointed out that in some states, excise duties account for 70-80% of the Maximum Retail Price (MRP) of alcoholic beverages. This, coupled with the rising inflation rates in the country, is putting additional pressure on the industry. The escalating costs of production, transportation, raw materials, and exorbitant import duties pose a significant threat to the sustainability of the Alco-Bev sector.

Proposed Solutions

To address these challenges, ISWAI has suggested a uniform inflation-linked supplier pricing model for the industry. This model would bring much-needed transparency and a consistent approach to state supplier pricing. Additionally, the association called for the rationalization of ad hoc levies and taxes imposed by state governments.

Stimulating Economic Growth

ISWAI believes that these steps will stimulate economic growth and ensure the continued prosperity of the Alco-Bev sector. The association emphasized the need for a collaborative outlook between industry stakeholders and policymakers to achieve this goal. By working together, they can ensure the Alco-Bev sector's continued contribution to the Indian economy.

ISWAI Members

ISWAI's membership includes leading global Alco-Bev players such as Bacardi, Beam Suntory, Brown-Forman, Campari Group, Diageo-United Spirits, Moet Hennessy, Pernod Ricard, and William Grant & Sons.