INDIA. The Indian duty free industry was dealt another blow late last week when the Bombay High Court ruled that the India Tourism Development Corp (ITDC) must obtain a licence for the sale of foreign liquor at Chhatrapati Shivaji International Airport in Mumbai.
The judge also ruled that the ITDC must pay duties for liquor sold at the store from 2001.
The court case arose after the ITDC filed a petition against the Bombay State Government’s letters sent November 2001 and April 2002 notifying the ITDC to pay excise duty for the sale of liquor.
Industry observers point out that this is “highly detrimental for the growth and prosperity of Indian duty free industry”, especially since liquor is a key revenue-generating category.
The ITDC is not alone in being slapped with taxes.
Flemingo is battling against the State of Kerala’s demands for sales taxes on duty free sales at the company’s Trivandrum and Calicut airport stores. At Chennai Airport, the company is also required by the State of Tamil Nadu to pay sales taxes of INR52.7 million (US$1.2 million).
MORE STORIES ON INDIAN DUTY FREE
ITDC “˜open to strategic alliances’ with international travel retail companies – 22/05/06
Duty free operations at nine Indian airports are put up for tender – 14/05/2006
Flemingo India locked in local combat over sales tax on duty free sales – 24/05/2006
