1 hr ago
Delhi weighs British liquor duty cut, Scotch prices may fall
Delhi is considering lowering the prices of some Scotch whiskies from the United Kingdom.
The change would follow a trade agreement that lowers the import duty on British whisky and gin over time.
Officials say some premium bottles might cost Rs 200 to Rs 300 less.
The price drop could be as much as 15 per cent for some brands.
But the decision has not been finalized, and the city has no full-time Excise Commissioner right now.
Officials also need to work out what a price change would mean for liquor already in stock.
Other taxes and shop costs will still be part of the price, so bottles may not get cheaper by the full amount of the duty cut.
A separate proposed Delhi policy could raise some liquor duties and retail margins.
Delhi officials are considering a customs-duty-related price reduction for some British Scotch whiskies.
Some premium bottles could become Rs 200-300 cheaper, or fall by up to 15 per cent, officials said.
India’s trade agreement with the United Kingdom phases down import duty on UK whisky and gin from 150 to 75 per cent, then to 40 per cent in the agreement’s 10th year.
The decision may take time because Delhi has no full-time Excise Commissioner and officials must address the effect on existing stocks.
A separate draft Delhi excise policy, sent to the Centre for approval, may raise excise duty and retail margins; taxes and other costs mean retail cuts may be smaller than the customs-duty reduction.
- Who
- The Delhi government and Delhi Excise Department are considering the change; liquor buyers could be affected.
- What
- A possible reduction in prices of some British Scotch whiskies following lower customs duties.
- Where
- Delhi, India.
- When
- Officials said revised prices could begin appearing this month, but the decision may take time.
- Why
- India’s trade agreement with the United Kingdom reduces import duties on UK whisky and gin.
Potential price reductions
Other costs and policy changes
Effect on retail prices
Potential price reductions
Lower customs duties could reduce prices of some premium Scotch whiskies by up to 15 per cent.
Other costs and policy changes
Officials say taxes, state excise duty, trade margins and other costs mean retail prices may not fall by the full amount of the duty cut.
Other excise policy
Potential price reductions
The customs-duty change could make selected imported Scotch whiskies cheaper.
Other costs and policy changes
A separate proposed Delhi excise policy may increase excise duty and retail margins, requiring the government to assess the competing effects.
Key facts
- Potential price reduction
- Up to 15 per cent for some premium Scotch whiskies
- Estimated premium-bottle saving
- Rs 200-300 per bottle for some brands
- UK whisky and gin duty
- Scheduled to fall from 150 to 75 per cent, then to 40 per cent in the agreement’s 10th year
- Excise Commissioner
- Delhi currently has no full-time Excise Commissioner, according to the article
- New excise policy
- A draft has been sent to the Centre for approval and may recommend higher excise duty and retail margins
- Other price components
- State excise duty, taxes, trade margins and other costs remain part of retail prices
- Indicative bottle prices
- Johnnie Walker Black Label (750 ml) around Rs 3,100; Macallan 12-Year (750 ml) around Rs 8,000
Sources
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