Mumbai/New Delhi, Feb 28 : While the domestic alcoholic beverages industryhas been cheered, for the multinational liquor companies, the 2001-02 Budgethas not left them in high spirits. The declaration to levy a countervailingduty (CVD) on imported liquor has left the MNCs high and dry. This has,however, given a fillip to the domestic industry. According to ShawWallace's chairman Manu Chhabria: "The domestic alcoholic beverages sectorwould now be able to face the impending competition from imports withadequate protection in nature of duties."In almost all cases CVDs are levied on the highest level of excise duty paidby the local industry and if this is the case then CVDs at 200 per cent ascharged by Maharastra would come into force. However, the quantum of CVD isstill not known. According to the UB group executive vice-chairman Subhash RGupte: "The liquor industry will be happy that the CVD will be put onimported liquors. This will ensure a level playing field for Indian beveragealcohol companies."
Said UDV India president Deepak Roy: "It is a very progressive budget and itaddresses both macro and micro issues. However, I am disappointed that a CVDhas been imposed on imported liquor."
The finance minister has not reduced customs duty from the current level of223 per cent for spirits, 119 per cent for wines and beer.
Said Millenium Alcobev's managing director (MD) Ravi Jain: "This will act asan equaliser between the domestic as well as imported brands. Currently thedomestic brands have to pay various levies at the state level, thereforethis CVD was necessary."
McDowell MD Vijay Rekhi added: "Ostensibly this measure will ensure thatcheap imports of whiskeys at $1.5, vodka at $1, wines at 1 frank and a canof beer at $0.20 do not flood the Indian market as majority of the statesare not prepared to levy special fees in lieu of excise."
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
