With the Modi juggernaut powering back to a thumping majority in the recent Lok Sabha elections, what does this presage for the wine industry in India?
As everybody knows, alcoholic beverages are a state subject in India – which means that every state (and Union Territory) has its own rules and regulations and duties and taxes on the stuff. Imports come under the purview of Central Customs & Excise, which since 2009 levies a Basic Customs Duty on all alcoholic beverages at 150% of Assessable Value (which is the CIF cost +1%). Star hotels and restaurants earning foreign exchange can get a “duty-free” licence, which enables them to buy spirits/beer/wine, free of customs duty – a huge saving, enabling them to charge mark-ups of 250% to 300% (which is partly why prices are so high in these establishments).
Member Only Content
Join today for access to all Sommelier India articles online and to get the print magazine delivered to your doorstep. Members can Sign In or email [email protected] for their sign in details if they’re having difficulty accessing the member only content.
Subscribe by Credit Card
Subscribe by mailing a Cheque or Bank Draft
Cheques should be in the name of Sommelier India and mailed to the following address:
Sommelier India,
C-320 Defence Colony,
New Delhi 110 024, India
Download our subscription form (PDF) to print and mail with your cheque.
