Liquor makers urge Bengal CM not to alter tax structure

"The industry fears that this policy will create undue disruptions and even possible job losses just before the peak puja time," he said. Giri said there are "some serious gaps in the proposed new tax structure which the government is mulling".

Manufacturers of alcoholic beverages have urged West Bengal Chief Minister Mamata Banerjee not to alter the existing structure of tax on liquor before the festive seasons as it will hit the market. In a joint representation to the chief minister, two major liquor makers' associations -- Confederation of Indian Alcoholic Beverage Companies (CIABC) and International Spirits and Wines Association of India (ISWAI) -- have said if the current tax structure is changed before pujas, it would prove "counterproductive" for both the government and the industry.

The state government had imposed a 30 per cent sales tax on liquor causing "a deep slide in sales and thus hurting the government exchequer", they said. They also said the state had already seen a decline in volumes in July and August, adding that any move to raise the MRPs of the bottles could lead to a revenue shortfall to the state government.

CIABC director-general Vinod Giri had said a policy proposed by the West Bengal Excise Department on August 19, 2020 has created great concern amongst companies. "The industry fears that this policy will create undue disruptions and even possible job losses just before the peak puja time," he said.

Giri said there are "some serious gaps in the proposed new tax structure which the government is mulling". He urged the government to keep the existing rates valid for 12 months and also bring parity in pricing with other states.