Imported single malt whisky and cognac could become more affordable for connoisseurs in Bengal. Following the rollout of the new excise structure in the state, some of the imported brands such as Glenfiddich, Glenlivet, Glenmorangie and Hennessy are seeing a downward revision in prices.

According to an industry source, the price of a 750 ml bottle of Glenmorangie 10-year single malt scotch had gone up from around Rs 8,400 to Rs 10,800 after the government imposed an additional sales tax to shore up revenue during the early months of the Covid period.

The new price, which has been disclosed by the excise department, shows that MRP has come down to Rs 6,580. More expensive brands such as a 700-ml bottle of Hennessy XO Cognac is set to see a much sharper correction from Rs 38,138 (without sales tax) to Rs 17,900.

The industry suggests that a simplified duty structure for ‘Bottled in Origin’ (BIO) liquor is bringing down the price of imported liquor. The state excise has come out with a 16-slab pass fee structure for imported liquor based on ex-customs price and the pass fee ranges between Rs 372 and Rs 3,916 per bulk litre.

“Premium BIO segment should see a growth in volume. Even as the BIO is becoming cheaper, IMFL rates are going up. Consumers may now be encouraged to try BIO brands,” the source said.

But the IMFL industry, where prices have seen an upward revision, more prominent in the higher price bracket, feels this move will discourage domestic manufacturers, especially Indian single malt brands such as Amrut and Paul John. Moreover, the number of pass fee slabs at 16 for imported liquor is less compared with the 22-slab excise and additional excise duty in case of IMFL.

“It defies logic to reduce prices of imported liquor in Bengal when prices of Indian made premium products are being increased. A policy that favours direct import at the expense of India made products is flawed. It discourages investment in the country, affects prospects of lakhs of Indian workers and farmers and causes the government to lose taxes in the value chain,” Vinod Giri, director-general of the Confederation of Indian Alcoholic Beverage Companies, told The Telegraph.

The industry body has estimated that in the second quarter, Punjab, Haryana, Uttarakhand and Telangana have seen a rise in IMFL sales but Andhra, Chattisgarh, Bengal, and Rajasthan saw a decline.

With the exception of Chhattisgarh, the remaining states had imposed steep Covid taxes.

Government supports and promotes their own products worldwide. This policy seems to be doing exactly the opposite. We urge the government to review it and roll back