Scotch makers urge EU to take India to WTO on taxes
The Scotch Whisky Association (SWA) has urged the EU to launch WTO dispute settlement proceedings against India at the earliest, following its failure to reform the discriminatory tax treatment of imported spirits in the Budget.
By TNN |
BANGALORE: The Scotch Whisky Association (SWA) has urged the EU to launch WTO dispute settlement proceedings against India at the earliest, following its failure to reform the discriminatory tax treatment of imported spirits in the Budget.
In a robust statement issued on Wednesday night, SWA recalled that an EU investigation in 2006 found that the Indian fiscal regime for imported spirits and wines is in ‘blatant violation’ of WTO rules and urged early reform of the system, by Wednesday’s Budget at the latest. With no steps taken by India to reform the system, a WTO dispute settlement panel can be established to rule on the merits of the case. Its ruling is binding on the parties to the case.
The EU spirits sector has been successful on each of the three occasions on which discriminatory spirits taxation has been considered by a WTO panel — in case of Japan, Chile and South Korea.
The Scotch industry apex body has alleged that Scotch Whisky continues to be subject to discriminatory tax burden of up to 550% in India. SWA chief executive Gavin Hewitt said, “India has failed its WTO challenge and continues to deny consumers’ choice and fair market access for Scotch Whisky and other imported spirits.
In a robust statement issued on Wednesday night, SWA recalled that an EU investigation in 2006 found that the Indian fiscal regime for imported spirits and wines is in ‘blatant violation’ of WTO rules and urged early reform of the system, by Wednesday’s Budget at the latest. With no steps taken by India to reform the system, a WTO dispute settlement panel can be established to rule on the merits of the case. Its ruling is binding on the parties to the case.
The EU spirits sector has been successful on each of the three occasions on which discriminatory spirits taxation has been considered by a WTO panel — in case of Japan, Chile and South Korea.
The Scotch industry apex body has alleged that Scotch Whisky continues to be subject to discriminatory tax burden of up to 550% in India. SWA chief executive Gavin Hewitt said, “India has failed its WTO challenge and continues to deny consumers’ choice and fair market access for Scotch Whisky and other imported spirits.
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