Anheuser-Busch InBev, is saying that India is becoming more important for investments. They think it’s because India has a good business environment and its economy is growing strong. But, they also say that to sell more beer in India, the government should change the rules about taxes on alcohol.
“Global Beer Giant Calls for Tax Tweaks to Quench Thirst for Expansion in the Country”
The leader of Budweiser in Asia, Jan Craps, said, “India is doing well, and if we make beer taxes lower, it will be even better for us.” He also shared that they’ve put a lot of money into India over ten years, around $1.5 billion! Every year, they pay almost $500 million in taxes.
This big beer company, which makes a lot of beers in the world, is happy that in India, more people are buying Budweiser. Now, India is the fourth biggest place globally where Budweiser sells a lot. This is a big jump from last year when it was the sixth, beating countries like Canada and the UK. People in India are also buying fancier Budweiser beers more than before.
Besides beer, this company is making other drinks like energy drinks, whiskey, spiced rum, vodka, and even gin. They want to offer more than just beer.
Even though India is a great market for beer, there are some challenges. The taxes are high, and there are only 80,000 places where you can buy alcohol in the whole country. Every year, more than 20 million people in India are old enough to drink, but still, only 10% of the drinks people buy are beer. People drink about two liters of beer per person, which is less than in many other Asian countries.
Jan Craps talked about how the tax on beer in India is much higher than on whiskey. He says this makes people choose stronger drinks. He also mentioned that in some states, they have to wait a long time to get paid, and in others, they can pay taxes later. They like it more when they can pay later because it’s better for their business.
In India, there is a big beer company called United Breweries, and they own the Kingfisher brand. They are the biggest in India, with over 50% of the market. Anheuser-Busch InBev is second, with around 23%.
Most people in India like strong beer, and more than 80% of the beer sold is strong. These people might also buy cheaper spirits. The price and the taxes on these drinks are very important. If the rules make beer more expensive, many people might start buying cheaper local drinks instead, says a report.
The big beer company thinks other states in India should learn from West Bengal. They reduced the taxes on beer, and then more people bought beer – almost 90% more! And, the government also got 40% more revenue from taxes. So, the big beer company hopes other places in India will do the same.