Scotch Whisky To Become Cheaper In Delhi? Excise Dept Mulls Reduced Custom Duty

India, during the last year, signed a Comprehensive Economic and Trade Agreement with the United Kingdom (UK). As per this trade agreement, import duties on British liquor would be significantly reduced. As part of the implementation of this trade agreement, the Delhi Excise Department is, as of now, considering a reduction in customs duty for Scotch whisky. While no decision has been officially made yet, if the decision is greenlit, Scotch whisky will get significantly cheaper in Delhi. Here is how much reduction is being considered for British spirits.

Scotch Whisky Might Become Cheaper In Delhi Soon

According to the data cited in Deccan Herald (DH), the trade agreement dictates reducing the duty on gin and whisky from 150 percent to 75 percent. This means that the reduction will be by 50 percent. What is more, during the tenth year of the trade agreement, the duty will be further reduced to 40 percent from 75 percent.

However, it is important to take into account the state excise duty, taxes, and trade margins, which means that this reduction in import is unlikely to be adequately reflected in the final price of the bottle.

As per DH, prices of premium whisky, like Johnnie Walker Black Label, might fall by around INR 200 or INR 300 per bottle. For brands such as Black Dog, 100 Pipers, Passport, Vat 69, Black & White, and more, all of which are Scotch brands but are bottled in India to save tax, there might be a price drop of INR 100 to INR 150.

Also Read: Can You Carry Alcohol From Goa To Mumbai, Delhi Or Bengaluru? Rules Explained

Price Of Old Stock And Its Disposal

The slashing of price is not without certain issues. It might create a problem for the disposal of old stock owing to the difference in price. What is more, IAS Ravi Jha, who was previously the Excise Commissioner, was transferred to Arunachal Pradesh.

So, a decision regarding excise and duties will not be taken until a new commissioner is appointed.

Also Read: Delhi Liquor Prices Set To Rise Under Proposed New Excise Policy

Summing Up

The trade agreement between the UK and India is certainly going to have some impact on the prices of products in India. The news is welcome for Scotch lovers and whisky aficionados alike, as more premium whisky will also now be available at a more affordable rate. However, the specifics of certain aspects will only be finalized once a new full-time commissioner is appointed.