India moves to simplify tax system

India’s central government is working towards the implementation of a consistent internal tax system on wine, with talks due to take place across 10 states.

Mumbai IndiaAt present, states set their own tariffs, which apply to domestic wine shipments from other states as well as foreign imports. This level can vary between 30% and 100%, representing just one of many variables in the country’s notoriously complex and punitive approach to wine taxation.

Foreign imports must also pay a 150% federal duty rate, although India’s minister for commerce & industry, Anand Sharma, recently offered to slash this to 40% as part of free trade agreement discussions with the European Union.

The 10 states included in these initial meetings are Maharashtra and Karnataka, which between them account for the vast majority of India’s domestic wine production, as well as Tamil Nadu, New Delhi, Goa, Madhya Pradesh, Rajasthan, Punjab, Hariyana and West Bengal.

The state of Gujarat, which currently boasts one of the fastest growing economies in India, currently operates a complete ban on alcohol sales.

Highlighting the problems caused by the current set-up, Jagdish Holkar, chairman of the Indian Grape Processing Board, told the Times of India: “The lack of uniform duty and tax structure is one of the major challenges the wine industry in the country is facing today.”

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Brand Manager

Elixir Distillers
Park Royal, London UK

Marketing Assistant

Speciality Brands
Park Royal, London, UK

Key Account Manager

MMI Maldives
Maldives

Financial Controller

London City Bond
Barking, UK

Duty Manager

The Whisky Exchange
Great Portland Street, London

Spirits Advisor

The Whisky Exchange
London, UK

International Sales Manager

Elixir Distillers
Park Royal, London, UK

Brand Marketing Executive

Elixir Distillers
Park Royal, London, UK

Millésime Bio 2020

Montpellier,France
27th Jan 2020

Maisons Marques et Domaines Annual Tasting

London,United Kingdom
29th Jan 2020

Austrian Wine Tasting

London,United Kingdom
3rd Feb 2020
Click to view more