Column Hungover on taxes

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The best means to counteract these challenges in the tax regime to support the growth of the Indian wine industry is by agreeing to the longstanding demand of the industry that wine should be treated as any other beverage. Wine makers are commodity traders who should not be regulated and free movement of agricultural produce should be permitted between states. This is very essential for food processing where the processing units are located in different states.

It’s interesting to see a wine-drinking culture seeping into India to encompass the traditional beer lovers. India is still a nascent but fast growing wine market which showcases the changing lifestyles and increasing disposable incomes of people. Wine as a beverage is low on alcohol and good for health, making it a sophisticated choice for today’s growing middle class which has a strong eating-out culture.

Also, the recent decision of setting up a national wine board to boost the sector and an adhoc committee to govern its work is the step in the right direction. The need of the hour for the Indian wine sector, which is in a state of infancy, is a platform for consolidation of efforts and to grow the market in an integrated and structured pattern.

If we want to compete with other nations who dominate the global business of wine, then the government needs to start taking policies affecting Indian wine producers seriously.