Bhubaneswar, March 31, 2025 – Indian liquor manufacturers have called on Odisha’s newly elected BJP government to eliminate tax discrimination against locally produced alcoholic beverages. They are urging Chief Minister Mohan Charan Majhi to withdraw special tax benefits granted to foreign liquor brands by the previous government and ensure a fair business environment.
The Confederation of Indian Alcoholic Beverage Companies (CIABC), representing domestic liquor producers, has expressed concern over the lower taxes imposed on imported liquor—such as whisky, gin, brandy, vodka, and wine—compared to premium Indian-made brands. This, they argue, gives foreign brands an unfair advantage.
In 2022-23, Odisha’s previous government reduced excise duties on imported alcohol but did not extend the same benefit to Indian-made liquor. Local manufacturers are now hopeful that the new state government will correct this imbalance.
Call for Fair Taxation
“We have recommended that the Odisha government put an end to this unfair treatment, especially for premium and luxury Indian liquors like single malt whiskies, blended whiskies, gins, and rums,” said Anant S Iyer, Director General of CIABC. He emphasized that the excise duty should be adjusted to match the rates applied to foreign liquor to protect and promote Indian-made spirits.
Iyer pointed out that producing liquor in India is 50-75% more expensive than in Europe due to higher costs of raw materials and capital. With India currently negotiating Free Trade Agreements (FTAs) with various countries, import duties on foreign alcoholic beverages are expected to decrease, making imported liquor even cheaper.
“This will further widen the price gap between imported and Indian products. We have urged the state government to rationalize taxes on premium Indian liquors to ensure fair competition,” he added.
Economic and Employment Impact
The Indian liquor industry plays a vital role in the country’s economy, supporting over 50 lakh farmers and providing employment to more than 20 lakh workers nationwide, including many in Odisha. Additionally, the sector generates significant revenue for the government each year.
Highlighting the Union Government’s initiatives like Atmanirbhar Bharat (Self-Reliant India) and Viksit Bharat (Developed India), Iyer said, “We believe the Odisha government’s Utkarsh Odisha initiative aligns with these goals. Supporting the domestic liquor industry is not just about fairness but also about strengthening an industry that contributes substantially to the economy.”
Indian manufacturers are now awaiting a positive response from the Odisha government to bring about the much-needed reforms in the liquor taxation system.
