Stories
Good News for Liquor Lovers: Delhi Premium Scotch Prices May Drop by 10-15%!
- •Prices of some premium Scotch whisky brands in Delhi could decrease by 10 to 15 percent.
- •The Delhi Excise Department is reviewing the impact of reduced customs duties under the India-UK trade agreement.
- •Price changes for some brands may appear after October 10.
- •Not all brands will benefit; rules related to the country of origin of the product apply to tax exemptions.
- •While customs duties are reduced, a potential increase in state excise duties could offset some benefits.
Key Questions Answered
Under the India-UK trade agreement, customs duties on eligible British whisky and gin are reduced from 150% to 75%, which could lead to a 10 to 15 percent price drop for some premium Scotch brands in Delhi. However, officials are conducting a brand-by-brand review, meaning price changes will not apply uniformly to all brands and may appear after October 10.
No, not every brand will benefit from lower customs duties. Rules regarding the product's country of origin apply under CETA, meaning having an international or British brand name does not automatically qualify a bottle for tax exemptions. Furthermore, differences in whether products are imported as finished goods or manufactured in India will cause price impacts to vary.
Yes, while lower customs duties might reduce prices for certain premium liquors, the Delhi government is also considering a proposal to increase excise duties. If the state government decides to move forward with higher excise duties, it could put upward pressure on liquor prices and partially offset the benefits of reduced import taxes.
