SWA PUSHING FOR TAX REFORM IN INDIA

The Scottish Whiskey Association is reportedly filing grievances against India if the country does not soon make some changes. According to beveragedaily.com, the Association plans to ask the EU to make an official complaint at the World Trade Organization against India if it does not lift “excessive duty tax on imported spirits drinks.” The association claims the duty tax ranges from 212%-525% and was reportedly disappointed that the Indian government had not already moved towards reform. Peter Wilkinson, SWA international affairs director, hopes for a negotiation but is prepared to push the EU to intervene. “Domestic interests appear to have outweighed international commitments and, as a result, market access continues to be unfairly restricted by a protectionist tariff and tax system. Indian consumers are being denied the opportunity to buy international spirits brands at an affordable price,” Peter was quoted saying. As a result, Indian trade barriers are leading to an increase in fraudulent whiskey. The SWA wants India to halve its duty tax to 75% and replace additional tax on spirits with a charge to encourage more affordable prices and product choices. The European Commission already began investigating India’s import system for EU wine and spirits last autumn.