The lobby of indian liquor companies turned against it!
The liquor lobby of india has come out against the reduction of tariff on America's Bourbon whiskey. They claim that by reducing the tariff, this American liquor will be dumped in india, which will ruin India's wine industry. The Confederation of indian Alcoholic Beverage Companies has demanded the state governments to end the tax concessions being given at the state level on Bourbon whiskey.
It has been said that this is necessary to save India's alcohol industry. The director general of the organization, Anant S. Iyer, has also demanded the indian government to take appropriate steps in this direction. Especially, efforts have been made to clear the way for the sale of indian liquor abroad.
There could be a loss of millions of dollars
The indian government has reduced the tariff on Bourbon whiskey from 150 percent to 100 percent. Along with this, tax has also been reduced on many types of wine. Import duty on wine made from fresh grapes, vermouth and some other fermented beverages has been reduced to 100 percent.
Similarly, the same rate will be applicable on pure ethyl alcohol containing 80 percent alcohol. In the last financial year, the total import of all these products was about one billion dollars. That is, the government received millions of dollars in the form of import duty. But now the government will suffer a loss from this.
Bourbon whiskey is made in Kentucky, America
The basic custom duty on Bourbon whiskey has been fixed at 50 percent. Apart from this, an agricultural cess of 50 percent will also be levied on it. Bourbon whiskey is made in the state of Kentucky in America. At least 51 percent corn is used to make it. Last year, the import of two tariff lines related to Bourbon was about 2.6 million dollars, while its import from America was 0.8 million dollars. This reduction in import duty was notified a few hours before the meeting of prime minister Narendra Modi and trump on Thursday. In this meeting, most of the discussion was on tariff.
click and follow Indiaherald WhatsApp channel