Indian spirit makers protest excise policies favoring imported liquor over domestic brands 

INDIA – Indian alcoholic beverage manufacturers have raised alarm over what they describe as discriminatory state excise policies that favor imported liquor over domestic brands.  

The Confederation of Indian Alcoholic Beverage Companies (CIABC), the apex body representing Indian spirit makers, has urged several state governments to address anomalies that disadvantage homegrown premium labels, including those with global recognition. 

According to CIABC, Indian brands are burdened with “exorbitantly high brand registration fees” compared to imported bottled-in-origin (BIO) products, creating significant barriers to market entry.  

The body warned that with new free trade agreements expected to lower customs duties on BIO spirits, prevailing high state excise duties on Indian premium brands could make them even less competitive. 

“Ironically, when Indian premium and luxury brands are winning accolades across the globe, they face taxation hurdles and discrimination in duties in the domestic market. Such discrimination in favor of imported products over comparable Indian products belies the Prime Minister’s call for an ‘Atmanirbhar Bharat,” the CIABC stated. 

BIO products, which include whiskies and spirits bottled in their country of origin and imported with branding intact, currently enjoy tax advantages in about a dozen states. These include high-consumption markets such as Maharashtra, Delhi, Kerala, and Haryana, as well as Odisha, Assam, and Madhya Pradesh. 

In Maharashtra, for instance, excise duty imposed on Indian Made Foreign Liquor (IMFL) is double that levied on BIO products. Until 2021, BIO imports faced a 300% duty, which was halved, while IMFL continues to pay 300%.  

The CIABC noted that this change has driven BIO sales from 5,000 cases per month in 2021 to 42,000 cases in 2024, cutting into state revenue as IMFL sales decline. 

“High duties on Indian premium brands make them less competitive,” said CIABC Director General Anant S. Iyer, highlighting that growth in premium IMFL slowed to 6% in FY24 from 24% in FY23 following the policy shift. 

Citing examples, the association pointed out that in Maharashtra a case of Amrut Fusion, a premium Indian single malt whisky, pays Rs 6,799 in excise duty, compared to Rs 4,785 for a case of Johnnie Walker Black Label, a blended Scotch whisky. 

Delhi has also been flagged for prohibitive costs, with excise registration fees of Rs 25 lakh per whisky or rum brand, Rs 15 lakh for beer, Rs 12 lakh for vodka, gin, or rum, Rs 8 lakh for brandy, and Rs 2 lakh for wine. These costs have deterred many Indian premium single malts, despite their popularity in other states and abroad, from entering the market. 

The CIABC confirmed it continues to engage state governments to review excise structures that place Indian spirits at a disadvantage against imported products. 

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