THE EU HAS REPORTEDLY SUSPENDED A WTO INVESTIGATION
over India’s archaic tariff system after India passed a law barring any additional national taxes on wine and spirits imports. The suspension will last up to a year, during which the EU will continue to monitor the tax situation in India.
The US declined to say if it plans to also stop its own WTO investigation. The tax system is still a little sketchy, to say the least. For one thing, India’s raised the basic duty on wines from 100% to 150% to match spirits. Secondly, Indian states still have the ability to impose additional taxes. The state government of Maharashtra has already imposed a 200% tax on imported spirits for Mumbai, the largest city in India.
The U.S., the EU and Japan, by contrast, allow nearly all spirits to enter their markets duty-free. China tacks on only a 10% charge on foreign spirits.
The US declined to say if it plans to also stop its own WTO investigation. The tax system is still a little sketchy, to say the least. For one thing, India’s raised the basic duty on wines from 100% to 150% to match spirits. Secondly, Indian states still have the ability to impose additional taxes. The state government of Maharashtra has already imposed a 200% tax on imported spirits for Mumbai, the largest city in India.
The U.S., the EU and Japan, by contrast, allow nearly all spirits to enter their markets duty-free. China tacks on only a 10% charge on foreign spirits.
posted at 11:57 AM
<< Home