Indian brewers seek level competition in Delhi market against Bhutan’s Nepal imported beer
New Delhi, India brews specialist beer, which requires a level competitive environment for beer in the Delhi market, says domestic manufacturers’ excise tax of 150%, while people from Bhutan and Nepal are taxed at lower rates.
Indian brewers said in a letter to the Delhi government that such absence of beer imported from Bhutan is for sale by Indian brewers. Here is a “huge unfavorable” situation for Indian beer.
The Indian government allows customs obligations from countries such as Bhutan and Nepal to encourage industries there.
The association said some state governments imposed additional excise tax on imported beer to offset the absence of tariffs and ensure a level competitive environment for imported beer on Bhutan or Nepal.
“However, the Delhi government does not impose any counterattack obligations on beer imports. In addition, it also imposes less tax on import taxes, i.e. 65% excise tax and 0% additional excise tax, with a fee of 150%, and the additional excise tax for household beer is also lower.”
Taking advantage of this, many small Indian companies have begun to import beer from Bhutan and Nepal for sale in Delhi.
In the process, the government also earns ₹The tax rate for imported beer is 20 less.
“Using the higher profits to invest in trade and branding, several brands from Bhutan flooded the Delhi market. Many of these brands are unknown, unheard of, and are not sold anywhere else in India. In their production, beer and quality standards are little known.”
Bai stands for leading beer tags – United Brewery, Abinbev and Carlsberg, together accounting for 85% of beer sold in India.
“In addition, if this discrimination and higher supply margins in these countries continue, there are concerns that other brewers may shift their investment there, which is harmful to the government’s “Made in India” policy,” it said.
BAI recommends “imposing the same consumption tax at 150% of imported beer used with domestic beer”.
By doing so, the government will receive the same income as domestic suppliers and ensure a level playing field.
“In addition, in order to maintain MRP equality, Bhutanese importers will need to adjust prices for their suppliers, thereby reducing the excess profits driven by the support brand,” it said.
According to a study by Oxford Economics, the Indian beer industry contributes ₹In 2023, India’s economy was 923.24 million, accounting for 0.3% of the country’s GDP.
It made a contribution ₹It said the tax paid through excise tax, sales tax, other taxes as well as the downstream value chain is Rs 51,376 crore.
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