Speaking to The Financial Express UDV India's general manager (sales global brands) Sunil Sethi said, "It is we who need a level playing field. The proposed CVD is unfair and we plan to take up the issue with senior government officials. The finance minister said the CVD will be decided, keeping in mind state levies, but why only on imports?" he asked.

According to Whyte and Mackay India managing director Amar Sinha, "As far as imports are concerned the proposed CVD will act as a barrier. Therefore, we plan to meet the concerned officials to find out an amicable solution."

According to Mr Sethi, "I believe the domestic companies have given the impression that foreign brands do not pay any fees or levies at the state levels, which is untrue. At the state level, we pay more than the domestic companies, besides customs duty at the Centre." He said, "If an imported bottle of scotch has a base price of Rs 100 in Maharashtra, then the domestic players pay only Rs 103 as state levy whereas an imported brand pays Rs 167. Besides, there is 224 per cent customs duty for imported brands."

He added, "If the government decides to impose the CVD, it will mean that a bottle of Johnnie Walker Black Label, which costs around Rs 1,400 in a duty free outlet, will cost Rs 3,500-Rs 4,000 in the country. This will lead to rampant smuggling and counterfeits in the market."

Mr Sethi said, "Companies will import despite the proposed CVD, but the question is how many customers will be able to afford imported brands." According to a senior Bacardi India official, "What level playing field are the domestic players asking for, we are the ones who need a level playing field."

He said depending on the stipulations set by each state, imported brands pay excise duty, vend fee, sales tax, special duty assessment fee, license fee/import fee or any other levy which is applicable.