With the Union Budget 2024 just around the corner, key players in the beverage industry voice their expectations for reforms that could drive growth and sustainability
With the Union Budget 2024 just around the corner, key players in the beverage industry are voicing their expectations for reforms that could drive growth and sustainability. The focus is on tax reforms, sustainable practices and infrastructure developments that could provide a boost to the alco-bev and coffee sectors.
Unified Taxation for Alco-Bev Sector
Vicky Chand, Director and CEO at Radiant Manufacturers, underscores the need for a comprehensive tax reform. “We have very high expectations with the budget as the Alco-Bev industry needs a major upgrade in terms of tax reforms. We genuinely hope that despite the coalition status of this government, we still get something fruitful out of the budget. If we were to be wishful, we would hope for One Nation One Tax for GST and inclusion of Alcohol on GST. If the whole country has a nationalised tax system for alcohol and not state-wise segregation, it will boost the industry manifold, thereby creating a lot many jobs,” he said.
Echoing this sentiment, Atul Kumar, Founder and Director of Lone Wolf Beverages, highlighted the transformative potential of a unified tax system emphasising that the call for ‘One Nation One Tax’ resonates deeply with the brand’s vision of simplifying complexities and fostering growth across sectors.
“Unifying various taxes under GST will not only streamline operations but also enhance transparency and compliance, which are crucial for a vibrant economy,” Kumar stated.
Kumar further emphasised the importance of a robust mechanism for seamless input tax credit and an inflation-linked pricing model. “By enabling businesses to claim credits on inputs, the government can empower us to reinvest in innovation, infrastructure and skill development, thus propelling economic growth,” he added.
Sustainable Practices and Tax Incentives for Coffee Sector
Mishthi Aggarwal, Founder of 93 Degrees Coffee Roasters, outlined the need for tax incentives and subsidies to support sustainable and organic coffee production.
“Reducing the Goods and Services Tax (GST) on specialty coffee would make it more affordable, potentially increasing consumer demand. Subsidies for organic farming would lower the cost of organic coffee beans, making them more accessible,” Aggarwal suggested.
Aggarwal also called for tax credits for sustainable practices, such as eco-friendly packaging and renewable energy investments, and grants for research and development in coffee production. “From the perspective of roasters and coffee training businesses, reducing import duties on essential machinery and equipment would lower costs and facilitate growth,” she noted.
Infrastructure Developments to Support the Coffee Industry
Aggarwal stressed the importance of infrastructure developments to support the entire coffee value chain. She noted that this includes enhancing production infrastructure, such as processing facilities that ensure high-quality coffee and consistent taste. Investments in production-level infrastructure and warehouses in key locations are crucial for maintaining quality and efficiency according to her.
She also highlighted the need for improved logistics infrastructure, including transportation networks and freight services, to streamline the movement of coffee from farms to markets. “Overall, this comprehensive approach will boost production, add value and facilitate trade, strengthening the entire coffee supply chain,” Aggarwal added.
Industry-Wide Collaboration for Growth and Innovation
The collective voices from the beverages sector reflect a unified call for policies that support growth, sustainability and innovation. As the beverage industry awaits the Union Budget 2024, the hope is for policies that not only address immediate challenges but also lay a robust foundation for long-term growth and sustainability.
