Government Mulling Over Curbs on Duty-Free Alcohol And Cigarettes

The government is likely to change rules regarding duty-free imports, especially on alcohol and cigarettes. Ministry of Commerce and Industry has sent their suggestion for the upcoming 2020-2021 budget.

Crux of the Matter

1. Ministry of Commerce and Industry has decided to uplift its Custom laws applicable to Indian airports to meet global standards.

2. Ministry has proposed a cut of 50% on the quantity of duty-free alcohol i.e. from 2 litres to 1 litre, and other duty-free items which can be brought in India, by passengers from overseas trips.

3. Considering cigarettes as a sin good, the Ministry has already reduced the number of cigarettes from 200 to 100 that can be brought to India from overseas.

4. Referring to global standards, Commerce and Industry Minister Piyush Goel said, “It’s not a question of quantity but it is the fact that India is not encouraging the import of alcohol and tobacco, which are sin goods.”

5. Contrary to this, private Indian airport operators expected to double the amount of duty-free alcohol from 2 litres to 4 litres, believing that it would take Indian standards in level with standards of countries like Singapore, Dubai, etc.

6. Indian airport operators have also said that this move will cost Rs. 650 crores to the airport sector. They added further that airport regulators would have to compensate for this loss by increasing the prices of airport land and parking charges.

Curiopedia

Duty-Free Shops – Duty-free shops are retail outlets whose goods are exempt from the payment of certain local or national taxes and duties, on the requirement that the goods sold will be sold to travelers who will take them out of the country. Which products can be sold duty-free vary by jurisdiction, as well as how they can be sold, and the process of calculating the duty or refunding the duty component. More Info Ministry of Commerce and Industry (India) – The Ministry of Commerce and Industry administers two departments, the Department of Commerce and the Department for Promotion of Industry & Internal Trade. The head of the Ministry is a Minister of Cabinet rank. More Info

Curated Coverage

1. Times of India – Govt moves to limit duty-free alcohol to 1 bottle, slash number of cigarettes

2. MoneyControl – India could limit duty-free alcohol to 1 bottle per passenger; check out liquor import limit of these 10 countries

3. Livemint – Commerce ministry moots limiting liquor purchase to 1 bottle at duty-free shops

4. India Today – No more airport booze hauls? Centre suggests limit on purchase of duty-free alcohol to one bottle

#Economy #MinistryofCommerceandIndustry