The imported wines will attract excise duty of 65% on the wholesale price up to Rs. 1000 and 50% on the additional value. Thus, wine with WSP of Rs. 1600 will attract a duty of Rs.950.
Wholesale Price, WSP has been defined as the duty-free import price plus importer's margin. Customs Duties and VAT will not be included. It is not clear whether the other expenses included in the loading by the importers will be included.
Imported liquor draws a duty of 85% on WSP up to Rs. 1000 and 50% on the additional price. Thus, the duty on a single malt with WSP of Rs. 1600 will be Rs. 1150. The new policy is expected to result in higher prices.
DelWine had predicted a couple of months ago that the policy would be postponed till at least July 1 and duties will be applicable on the basis of WSP.
The policy is applicable with effect from July 1
Indian wines will also be taxed on the WSP basis with more slabs- starting at 65% on WSP of Rs. 0-100. it will be 40% for the slab of Rs. 100-250. For Higher Price it will be 30% on the amount higher than Rs. 250.
More details will be published soon.
For the circular dated June 7 and released today, pl click HERE.