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Delhi Wine Club

Posted: Saturday, September 1 2007. 11:00 AM

Maharashtra in Limbo due to Excise Duties Impasse

The unreasonable excise structure announced by Maharashtra, post-ACD elimination by the central government on July 3 has resulted in a panic like situation with importers refusing to supply material and hotels not taking delivery resulting in no sales for over 6 weeks and dwindling stocks.

The importers and the hotel industry are still in a state of shock. No one can believe that the government can be so autocratic that it refuses to see the reason. Maharashtra customer surely would be cursing the state government. The 150% duty imposed by the Maharashtra government on July 10, on top of the increased import duty form 100% to 150% does not make any sense to anyone. The bootleggers must be in a state of celebration and jubilation.

Not for long though, hopefully. As reported by some importers who would not like to be quoted for a desire to stay afloat, the excise department has seen reason in their plea and the excise commissioner Mr. R. Jha is considering very sympathetically to bring the excise duties to a more reasonable, 50% higher-than-before excise duty, of Rs.300 bulk liter (translating into € 5 per regular bottle, irrespective of the value).

Mr. Jha has promised to discuss the matter with the government, according to reports received from Mumbai. One hopes that the impasse would not continue for long. The sales are suffering, the consumer is suffering but the government is also losing out on the revenue.

 
 

 
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