Due to hefty taxes, the alcohol industry in India is sailing on choppy waters. The AlcoBev industry in India accounts for 25% to 30% of the Indian revenue. The International Spirits & Wines Association of India (ISWAI) has warned that excessive taxes may endanger the viability of the alcoholic beverage industry. Around 67% to 80% of the prices of these products include taxes.
High Taxes Might Be A Threat To The Future Of Alcohol Industry In India: ISWAI
According to a press release, Nita Kapoor, CEO, ISWAI, said, “The Indian AlcoBev industry is in deep crisis due to the inflation on one hand and high taxation on another. ” Kapoor has said that immediate action is required to correct the problem by reducing taxes or raising product prices. She added that with the threat of high taxation, India might have to be ready to lose its ‘golden goose’.
Alcohol Industry Lacks Pricing Freedom
Kapoor stated further that the AlcoBev sector does not enjoy pricing freedom like other industries. She stated that industries like pharmaceuticals and automobiles increased the rates of their products. But the liquor industry doesn’t have that freedom. With no freedom to hike prices and the compulsion to pay high taxes, the liquor industry might face a dire crisis.
What Is ISWAI?
The Indian AlcoBev industry ranks ninth globally, with a market size of around USD 52.5 billion. It employs around 1.5 million people. ISWAI is a credible representative of the Indian Premium AlcoBev Industry with deep knowledge of governmental initiatives. Top brands in the liquor industry like Bacardi, William Grant & Sons, Diageo-United Spirits, Beam Suntory, Brown Forman and Pernod Ricard, are members of ISWAI. These brands create mammoth business and employment opportunities all across the country.
Meanwhile, are you ready to pay higher for your liquor?
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