Proposed cut in duty-free liquor, cigarettes to cause Rs 650 cr/year loss to airports: Industry body

Indian airports are likely to incur a revenue loss of Rs 650 crore per annum if the reported recommendations of the Commerce Ministry on duty-free sales are put in place, private airports operators body APAO said on Tuesday. Vehemently opposing the proposed move to reduce liquor allowance from two litres to one litre and to do away with import of cigarettes presently one carton of 100 sticks, the Association of Private Airport Operators (APAO) in a statement said the move will have “disastrous” effect on the domestic aviation industry.

The Commerce Ministry, as part of its proposals to the finance ministry ahead of the budget, has recommended restricting purchase of tax-free alcohol to one bottle at duty-free shops as part of steps to reduce import of non-essential goods, sources had said