New Delhi [India], October 2 (ANI): The Confederation of Indian Alcoholic Beverage Companies (CIABC) has urged Union Commerce and Industry Minister Piyush Goyal to ignore a proposal relating to reduction in basic customs duty on alcoholic beverages imported from the United Kingdom.
Any reduction in basic customs duty must be gradual and in a controlled manner to provide reasonable protection to Indian companies against predatory imports, it said. This will give a level-playing field against Western firms and help Indian products achieve global scale and success.
"Not doing so will have disastrous impact on the Indian industry, lead to a great loss to farmers and cause massive unemployment. It will also be against the Prime Minister's call for Atmanirbhar Bharat or Vocal for local," said the CIABC in a letter to the Minister.
CIABC Director General Vinod Giri said the Indian liquor industry needs protection against dumping and time to prepare itself against the unfair competitive structural advantages that large Western firms enjoy.
India is the third largest spirits market in the world by volume. With annual revenues of Rs 4.5 lakh crore, it is also one of the largest industries within the Indian economy.
The industry also contributes about Rs 2.4 lakh crore in taxes to the government, thus making it one of the highest tax contributors. It accounts for 20 to 40 per cent of tax revenues of most State governments.
Besides, the industry supports livelihood of 50 lakh farmers, impacting 3.5 crore people in rural India, and employing 20 lakh people in its production and supply chain, said Giri. (ANI)