INDIA. The Indian Ministry of Commerce & Industry has proposed cuts to the duty free allowance for alcohol, cigarettes and the total value of duty free goods that passengers can buy when returning from overseas.
The Indian media is widely reporting plans by the government department to halve the liquor allowance from two litres to one litre and a cut in the maximum number of cigarettes from 100. A drop in the value of goods that can be brought into the country without paying duty from the current INR50,000 (US$703) is also proposed. Any move to cut allowances would have a sharp impact on the dominant arrivals channel in airport duty free.
A senior source at one of India’s most prominent duty free retailers, Flemingo International, dismissed the proposals as unlikely to take effect, as the Ministry of Civil Aviation had recently requested an increase in the duty free allowance.
The Association of Private Airport Operators has also recently called for a doubling of the duty free liquor allowance to bring India in line with the UAE.
Kreol Group CEO Lal Arakulath (a partner with Dufry in Cochin Duty Free) told The Moodie Davitt Report that any cut in the duty free limit would bring a “very negative vibe” to the Indian duty free industry. He added: “Departing airports in other countries will benefit by introducing such a law. Today arrivals duty free is doing well in India thanks to better pricing and services.”
