The new duty cuts imposed by the Maharashtra government on imported spirits, on Tuesday, will result in prices dropping in the range of Rs 140 to Rs 4,300 for premium scotch whisky brands like Johnny Walker. However, the two-pronged duty structure that will also see an increase in excise duty on imported wines to 200% from the current level of 100%, has put the industry in a tangle.
The duty cuts will comprise four slabs. As per the first slab, for brands that cost above Rs 5000 per case, the duty will be 75% of the price or Rs 300, whichever is higher, instead of the earlier duty of 200%. Brands priced between Rs 2000-5000 per case will have a duty of 100% or Rs 300, whichever is higher. For brands that range between Rs 1,000-2,000/case, 150% duty or Rs 300, whichever is higher, will be imposed, while for brands that are priced below Rs 1,000, a duty of 200% or Rs 300 will be imposed.
Diageo has seen the prices of all its major brands drop. Johnny Walker Black Label will now cost Rs 2,728 (Rs 3,600), while the prices of JW Blue has fallen to Rs 15,355 from Rs 19,728.
Amrit Kiran Singh, chairman, International Spirits & Wine Association of India (ISWAI), says, “Even though the government gave a relief to imported spirits, the approach to imported wines is not tolerable. The domestic wine industry does not require further protection, as out of the 8,00,000 cases of wines consumed in the country, 7,00,000 are domestic brands.”
Asif Adil, MD, Diageo India, says, “The state government’s move is positive. We will work with them for more duty cuts. Compared to Goa and Punjab, prices of imported liquor in Maharashtra are high.”
For Moet Henssey, its champagne brand prices will increase as much as Rs 1,500, while the prices of imported spirits will come down by Rs 150. The price of Jim Beam (bourbon whisky) of Beam Global is supposed to come down from Rs 1725 per bottle to Rs 1638, while their tequila brand will see a decline of more than Rs 500.