HBI Staff | Mumbai 
The International Spirits & Wines Association of India (ISWAI), representing premium imported spirits and wine brands in India, is calling on the state governments to rationalise high excise duties. Facing challenges from discriminatory taxes, rising inflation, and import tariffs, beverage manufacturers are seeing their margins shrink.
In some states, excise duties make up 70-80% of the Maximum Retail Price (MRP) of alcoholic beverages, exacerbating the pressure on the industry amidst soaring inflation. The escalating costs of production, transportation, raw materials, and high import duties threaten the sustainability of the Alco-Bev sector.
ISWAI proposes a uniform inflation-linked supplier pricing model to bring transparency and consistency to state supplier pricing. Additionally, the association urges the rationalization of ad hoc levies and taxes imposed by state governments.
These measures, ISWAI believes, will spur economic growth and ensure the sector’s continued prosperity. Collaboration between industry stakeholders and policymakers is crucial to achieving this goal. Notable members of ISWAI include Bacardi, Diageo, Pernod Ricard, among others.
