New members of the All India Wine Producers Association (AIWPA) have decided to seek the removal of 100% excise duty on blended wines.
“The association will be seeking the removal of 100% excise on blended wines, said Yatin Patil, the new president of the association and owner of Vintage Wines. The government has imposed the duty on blended wines even if the grape varietals have been sourced within the state. This is hurting the industry, he said.
Last year, the state excise department had issued a notification imposing a 100% duty on bulk transfer of wines. As a result, large wineries such as Sula Wines stopped sourcing bulk wines from smaller players. After representations made by the association, the government relented and agreed to withdraw the notice on the payment of 100% excise on wine blended from purchasing bulk wine from other wineries in the state. The association is seeking a similar withdrawal of excise on blended varieties. Patil said blending two similar varietals from two different wineries also attracts excise.
Another issue that the association is raising is inclusion of the Alcobev industry in the ambit of GST, and for which the wine body plans to approach the Centre.
According to Patil, although top 10 wineries have been doing well, it is the smaller wineries that are cause for concern. They have been going through a crisis and we are looking at ways and means to ease the burden on them, he said.
An earlier move to seek a financial package had not brought results but the new association members plan to revisit this issue again. The association had sought a loan of some R50 crore.