June 08: The much awaited Delhi Excise Policy has been finally announced with duty slab rates as applicable on the wholesale prices, resulting in a marginal decrease in wines whereas duty on spirits has been increased, writes Subhash Arora.

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.

Subhash Arora

Comments:

Subhash Arora Says:
Please ask your astrologer. arora
Posted @ June 21, 2015 17:28

Sameer Seth Says:
Sir, would like to know where I can get exact duty slab effective from fin year 2015-16
Posted @ June 21, 2015 17:00

Himadri Bal Says:
New Excise Policy: Old wine in New Bottle, nothing else, The Central Govt. & State Govt. both already fixed their mind to end up the wine import business. Actually govt. do not think that we have any right to drink good quality wine, for that reason this new excise policy announced, Also Govt. Forced us to give wrong declaration if we want to do the business, who will check the WSP will be the lowest in NCR, Punjab & others states. Who will fix the terms of Whole Sale Price, What is the basis of Whole sale Price, who will fix the Profit Margin & Expenses cost, Any Big Distributor will suffer first as their expenses will high compare to small distributor, Small Distributer take less interest after checking the reducing profitability. I really do not know who is the person or persons to think this type of duty structure; I really appreciate him for his senseless thinking’s. It’s call catastrophic thinking. I am sure you can found more senseless thinking’s next year. All the best Excise Dept. of Delhi.
Posted @ June 15, 2011 17:07

Pankaj Khanna Says:
Sir,how can we sell wine in duty free shops and hotel.
Posted @ June 11, 2011 16:28

Subhash Arora Says:
People are still working on their calculators. Prima facie it appears not much change in Indian wines. Entry level imported wines should become cheaper by around 5-10% but there is an increase of Rs 300-500 in the mid range currently retailing for up to Rs. 2000. More expensve wines like Champagne will become much more expensive- to the tune of Rs 1200 or more. The problem is how to define WSP and ensure minimum impact for expensive wines. Not a good policy for wines, by any means unfortunately and we are back to square one- regressing actually. Subhash Arora
Posted @ June 11, 2011 12:29

Gaurav Anand Says:
Dear Mr. Arora, What is your assessment of the likely impact of the new excise policy on prices of imported wine in Delhi? Are they likely to go up or down, and by what extent? Thank you. Gaurav
Posted @ June 11, 2011 10:41


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