Budget 2021: Prices of imported alcoholic drinks may not change

Prices of imported alcoholic drinks may not change in the next fiscal. While the budget has reduced basic customs duty on liquor to 50% from 150%, it would be offset by the agricultural infrastructure cess of 100% imposed on tipple.

The new cess is only applicable on hard spirits such as Scotch, whisky, rum and vodka, and not on foreign beer which at present attracts 110% tax.

There could be a revised customs duty structure from 1 October this year. With high import duties, the market for foreign spirits and beer remains small in the country at less than 1-2% of the overall segment by volume, according to International Wine and Spirits Research data.