India turns down UK's request to lower duty on imported spirit

NEW DELHI: India said it was not possible to accede to United Kingdom''s request to reduce duty on imported spirits due to revenue and other considerations.
"We have expressed our inability to drastically cut down duty on imported spirits as several states have revenue considerations. At the same time, duty on imported spirits has in the last few years declined to around 300-400 per cent from over 700 per cent earlier," Commerce and Industry Minister Arun Shourie said after meeting a high powered British delegation here.
Shourie, however, said both countries had agreed to step up cooperation on issues under the WTO Doha Development agenda such as TRIPS and public health.
The delegation headed by Secretary of State for Trade and Industry, Patricia Hewitt, had during the discussions with the minister raised the issue of high duties in premium whiskies and other spirits in India which, she said, had led to creation of a black and grey market.
Shourie said, the argument of the UK liquor industry representatives that per capita consumption of spirits in India was very low was not valid since there were far more important considerations such as health and education.
Moreover, Government is committed to rationalise the existing duty structure in a phased manner. Therefore, a drastic cut in duties was not possible, he said.
"UK proposed to work on persuading US again. There were suggestions of finalising a list of diseases, exceptions to which could be included in case of excegencies at the request of organisations like World Health Organisation," he said, adding that India had requested UK to circulate a draft note on the issue.