Premium Scotch set to get cheaper in Delhi after duty cut
New Delhi: Lovers of premium Scotch whisky in Delhi may soon get relief on prices. After import duty on British liquor was reduced under the comprehensive free trade agreement between India and the United Kingdom, the Delhi government’s excise department has begun the process of implementing new prices. According to officials, some importers and wholesalers have also been given approval on the basis of revised costs. The new rates are likely to be reflected in the market in November.
Under the agreement, customs duty on eligible whisky and gin imported from the United Kingdom has been reduced from 150 percent to 75 percent. There is a provision to bring it down in phases to 40 percent over the next ten years. Products that meet the rules-of-origin conditions laid down in the agreement will benefit from this change.
According to estimates by industry experts, the price of a bottle of premium Scotch brands such as Johnnie Walker may fall by around Rs 200 to Rs 300. Prices of brands bottled in India, such as Black Dog, 100 Pipers, Passport, Vat 69 and Black & White, are estimated to decline by about Rs 100 to Rs 150. However, the actual reduction may vary depending on the brand and its cost.
The excise department may first move ahead with the process of implementing the revised prices in the hotel, club and restaurant category. After that, the new rates will reach retail shops. It may take a few weeks for old stock to be cleared and goods with new prices to arrive in the market.
Therefore, it is not necessary that prices of all Scotch brands will fall at the same time or in the same proportion. Customers will have to wait for the revised price list to be issued for the new rates.
