The Hindu Business Line : How duties affect imported spirits

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Bangalore March 7 The Chairman of the International Association of Wines & Spirits, Mr Amrit Kiran Singh, commenting on the US trade office taking India to the WTO said: "India's fear of cheap imports flooding the market is misplaced. Even if import duties are zero, each bottle will cost not less than Rs 1,000. When people buy brands, they don't look at pricing."

Illustrating how the duty structure for spirits affects the final price of a bottle of premium liquor to the consumer, an industry official said that if a case consisting of 12 bottles of 750 ml each of brands such as Jack Daniels or Black Label costs $150 if one adds 150 per cent, which is the basic customs duty, it will add up to $375. Adding the 25 per cent additional customs duty on to that will make it an additional $95. Therefore, the total price for a case of 12 bottles of 750 ml will be $460 or over Rs 20,000. This does not include 3 per cent educational cess and State levies, that are different for each State.

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