The agriculture infrastructure and development cess on two tariff items of bourbon whiskey have been reduced from 100 per cent to 50 per cent.
Chennai: Pursuant to the trade talks with the US, the government has lowered the duties on bourbon whiskey.
The agriculture infrastructure and development cess on two tariff items of bourbon whiskey have been reduced from 100 per cent to 50 per cent. The basic customs duty will remain at 50 per cent.
This amendment, enacted under the Customs Act, 1962, in conjunction with Section 124 of the Finance Act, 2021, aims to align trade policies with evolving economic strategies, the Finance Ministry said.
India imported bourbon whiskey worth $2.6 million in FY24. Of the imports, 0.78 million was from the US, UAE $0.54 million, Singapore $0.28 million and Italy $0.23 million.
The lower cess on bourbon whiskey is expected to boost imports and enhance its interest in the market. American whiskey producing companies like Weller will gain popularity in India with the move.
Bourbon whiskey accounts for less than 1 per cent of the country’s whiskey market. US aims at grabbing a higher wallet share of the middle and upper class in India who are connoisseurs of luxury brands.
