Indian state slashes Scotch excise tax by 50%

Indian state slashes Scotch excise tax by 50%

Commerce physique the Scotch Whisky Affiliation (SWA) has welcomed a 50% import tax reduce for the class in Maharashtra, India.

Scotch Whisky
The SWA welcomed the 50% import tax reduce in Maharashtra, India

The Maharashtra authorities has slashed excise obligation on Scotch whisky imported to the Indian state from 300% to 150% of the manufacturing price.

The sector has lengthy campaigned to reduce the 150% federal tariff on imported Scotch whisky, which the UK authorities mentioned it might prioritise in upcoming commerce talks with Indian authorities.

Maharashtra authorities officers mentioned the discount would assist scale back unlawful buying and selling of Scotch whisky and different spirits from different states, and double state income from gross sales.

Ian McKendrick, SWA worldwide director, mentioned: “It is a step in the best course and welcome recognition from Indian authorities that income may be boosted by lowering commerce limitations for Scotch whisky.

“The business hopes that the longer term UK-India commerce talks can construct on this progress at federal stage and scale back the present 150% tariff on imported Scotch whisky.

“A phased discount within the import tariff would unlock properly over £1 billion [US$1.33bn] of export progress for Scotch whisky over the primary 5 years, and have a knock on enhance to state and federal income in India.”

In October, the SWA joined the UK authorities on a go to to Mumbai in Maharashtra to construct connections with state and federal officers to extend whisky exports to India.

Malcolm Offord, UK authorities minister for Scotland, added: “I used to be delighted to go to Mumbai final month to advertise commerce hyperlinks between Scotland and India, and see the nice alternatives on supply for Scotch whisky exporters.

“This alteration to obligation in Maharashtra could be very welcome information for the business right here, and I’m hopeful that the continued work to additional scale back taxes on whisky exports to India will ship an actual enhance for Scotland’s world-renowned distilleries.”

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