NEWS
INDIA PROPOSED TO HALVE DUTY-FREE ALCOHOL PURCHASE TO ONE LITER
By Siulan Law Mathews DipWSET
21-1-2020
Credit: Koushik Chowdavarapu/Unsplash
The Indian Commerce Ministry has recommended to cut duty-free alcohol purchases for inbound passengers from two liters to one liter ahead of the Federal Budget on 1st February, Indian news media reported.
The proposal is said to be part of the Modi government’s efforts to to reduce import of non-essential goods to rein in trade deficit.
The ministry has also recommended that allowable duty-free cigarette cartons should be reduced to zero from one.
If accepted, Finance Minister Nirmala Sitharaman could announce the new restriction during the Federal Budget on 1st February.
Currently, inbound international passengers are allowed to buy two liters of duty-free alcohol and one carton of cigarettes.
The Commerce Ministry’s recommendation is in contrary to duty-free shop operators’ proposal to the government.
Indian media reported that the Indian Association of Private Airport Operators has proposed to the government to increase the duty-free liquor allowance from 2 liters to 4 liters.
The duty-free trade complained that the Commerce Ministry’s recommendation could impact wine and spirits sales at the airport.
According to Times of India, Indian airport duty-free shopping worth a total of USD450 million, about 70% of the purchases happened on arrival. Among the arrival sales, wine and spirits account for 50%.
(the writer can be contacted at: info@thewinechronicle.com)
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