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A very encouraging and big news is coming out from the capital Delhi for liquor lovers. Under the historic trade agreement between India and the United Kingdom (UK), the impact of the huge import duty reduction imposed on British whiskey is now visible in the Indian markets. As a result of this, there is every possibility of reduction in the prices of Scotch whiskey by about 7% in the national capital Delhi. The most important thing under this new system is that hotels, restaurants and clubs (HCR – Hotel, Club, Restaurant) are going to get its benefit first, which will reduce the burden on the pockets of those who party on weekends and enjoy nightlife. Let us know in detail about this entire excise and market related stir and how Scotch lovers are going to get this relief.
Impact of India-UK trade deal and import duty reduction
For a long time, talks were going on between India and Britain regarding Free Trade Agreement (FTA), after the implementation of which there has been a historic reduction in the customs duty on whiskey coming from Britain. According to experts, earlier there was a heavy tax on Scotch whiskey due to which bottles of premium brands were sold at very high prices. Now after halving the duty, a new pricing structure is being prepared at the level of Delhi Excise Department and distributors. Market experts believe that this policy change will bring down the prices of popular Scotch brands like Johnnie Walker, Chivas Regal, Glenfiddich and Black Dog, which will provide great relief to common consumers as well as businessmen associated with the hospitality industry.
Why will the hotel, club and restaurant (HCR) segment get relief first?
Experts on excise policy and commercial supply chain say that whenever there is such a policy change or tax cut, the first impact it has is on institutional and commercial buyers. Big hotels, high-end clubs and licensed restaurants in Delhi have a faster stock rotation process. Additionally, the hotel and club segment procures premium brands in bulk quantities directly from large distributors. This is the reason that after the coordination of the revised Minimum Retail Price (MRP) and statutory charges, Scotch will start being served at lower prices to the customers coming to hotel-clubs first. After this, gradually the stock will start arriving at retail outlets with new prices.
Visible after clearance of old stock at retail shops
It may take some time for common customers to fully realize the new and reduced prices in Delhi’s retail liquor market. According to excise rules and shopkeepers, there is already old stock in the shops, on which excise duty and MRP are fixed as per the old tax slab. Under the rules, unless the old stock is completely sold out or clear guidelines are issued by the department, it may take a few weeks for bottles with the new rates to arrive at the retail counter. However, the Excise Department is working to ensure that the actual benefit of this huge decline in import duty reaches the end consumer in a transparent manner, so that no black marketing or confusion is created in the market.
Golden opportunity for lovers of premium and single malt whiskey
12 year old blended Scotch and single malt whiskey have always been in highest demand among Scotch lovers. Due to the high prices, middle class lovers would often stay away from these brands or enjoy them only on special occasions. With the possible fall in prices, the scope of party culture and celebration will now expand further. A lot of excitement is being seen among the young professionals and nightlife lovers of Delhi NCR since the arrival of this news. Restaurant owners believe that the reduction in prices will increase the number of customers coming to their places and will give a new boost to the sales of premium drinks.
New guidelines and administrative preparations of Excise Department
The Excise Department of Delhi Government is also keeping a close watch on this entire process to ensure that the full benefit of reduction in import duty truly reaches the market. Work is going on at a rapid pace on new guidelines for brand registration, label approval and wholesale licensees (L-1 Licensees). As the imported consignments reach the bond warehouses in Delhi under the new duty structure, the new and revised prices of Scotch bottles will be officially implemented in the market. Overall, it can be said that in the coming days, celebrations are going to become more affordable in the bars, hotels and clubs of Delhi.