INDIA. In some welcome news for the travel retail industry, the government has left the arrivals duty free allowance intact in its new budget.
As reported, the Indian Ministry of Commerce & Industry had proposed sharp reductions on alcohol, cigarettes and the total value of duty free goods that passengers can bring in when returning from overseas.
Most worryingly, the Ministry had wanted to halve the liquor allowance from two litres to one and eliminate the 100 sticks-cigarettes allowance. Both measures would have hit the Indian arrivals duty free sector (the majority of airport duty free business) hard as well as airports – particularly those in the Middle East – serving large numbers of India-bound travellers.
However, in her Union Budget of India for 2020–2021 presented yesterday, Finance Minister Nirmala Sitharaman left the allowances in place.
“The budget is out – no change in allowances,” Flemingo International CEO Atul Ahuja told The Moodie Davitt Report.
The positive news reflects creditably on the pro-industry lobbying work by several trade organisations over recent weeks, including ACI Asia-Pacific; Asia Pacific Travel Retail Association (APTRA); the Association of Private Airport Operators; and the International Spirits & Wines Association of India.
APTRA President Grant Fleming said: “We are pleased that no reductions were made to the duty free allowance in India’s Union Budget 2020, announced on 1 February. We are grateful for the support of APTRA members in India bringing vital knowledge and local insight to the table.
“Additionally, working alongside the Association of Private Airport Operators (India) as well as Airports Council International enabled a timely representation back to the relevant government bodies. We also obtained further support as part of a broader industry approach that included fellow associations, DFWC and ETRC.”
He added: “We’ll keep a close eye on the situation going forward, working with our members in the region to continue the connection we have established with the Indian government regulators. A key objective for us is to engage them with the unique dynamics of the travel retail market and the valuable contribution it makes to airport infrastructure and to GDP, especially in emerging economies like India. Industry collaboration plays a vital role in maximising our voice to stakeholders in national government and is an essential value running through APTRA’s mission and our core strategic pillars of advocacy, networking and knowledge.”
