Delhi Liquor Price Update: Premium Scotch Brands May Become 10-15% Cheaper From October

New Delhi: There may be relief news for those buying premium liquor in Delhi in the coming days. There is a possibility of a 10 to 15 per cent reduction in the prices of some premium Scotch whisky and other British liquor brands in the capital. Delhi's Excise Department is currently watching the impact of reduced customs duty after the India-UK trade agreement on the retail prices of liquor. According to officials, prices may change depending on individual brands and the eligibility of their products. For some brands, new prices may be seen after October 10.

What changed from the India-UK agreement?

British whisky is eligible under the Comprehensive Economic and Trade Agreement, i.e., CETA, between India and Britain and on which there has been a major reduction in customs duty. Earlier, the custom duty on these products was up to 150 percent, which has been reduced to 75 per cent. There is a provision to further reduce it in a phased manner in the coming years and there is a plan to bring it down to 40 per cent.

However, the 50 per cent reduction in custom duty does not mean that the retail price of a liquor bottle will also directly reduce by 50 per cent. Many other expenses are also involved in deciding the final price of any imported liquor.

What factors depend on the price of a bottle?

Apart from custom duty, the price of premium liquor also includes state government excise duty, taxes, retail margin and costs related to import and distribution. Therefore, it is not necessary that the full benefit of reduced customs duty reaches the customer. For this reason, the Excise Department is reviewing its actual impact on different brands.

Will every Scotch brand be cheap?

To avail the benefit of lower customs duty under CETA, the product must meet the prescribed country of origin and other eligibility criteria. It is not enough for a brand to have a British or international name. Many brands are imported into India in finished bottled form, while some products are bottled or manufactured in India. In such cases the impact of custom duty may be different. Therefore the Excise Department is reviewing the prices brand-by-brand.

May the benefits of cheap liquor be reduced?

On one hand, there is a possibility of reduction in the prices of some premium brands due to lower customs duty on imported liquor in Delhi, while on the other hand, a proposal to increase the excise duty is also said to be under consideration. At present the increase in excise duty has not been implemented.

If the Delhi government decides to increase the excise duty, it may put pressure on the retail prices of liquor to rise again. In such a situation, some part of the relief provided by lower custom duty may also be lost.

What will change after October 10?

As of now, there is no official announcement of uniform price cut for all premium Scotch brands in Delhi. After the completion of the review by the Excise Department, the picture of change in prices of eligible brands will be clear. In such a situation, liquor buyers may see a reduction in the prices of some premium British brands after October 10, but it is not yet decided whether this benefit will be available equally to every brand and every bottle.