British Scotch makers seek safeguard against duty hikes

The Scotch Whisky Association (SWA), the trade body representing Scotch producers of the UK, has urged the British government to negotiate safeguards with its Indian equivalent under the ongoing trade talks to prevent further increase in excise and other taxes on alcohol at state level.

- ASIT RANJAN MISHRA

The organisation fears any import tariff liberalisation could be offset by increases in state-level taxes.

Responding to the inquiry by the International Trade Committee of the British Parliament into the ongoing free trade agreement (FTA) between the UK and India, the SWA has said in addition to import tariff, alcohol is also subject to “extremely high” excise duties and other taxes at state level.

“There is also concern in the industry that any liberalisation of import tariffs could be offset by increases in state-level taxes. The SWA would welcome negotiators seeking safeguards to prevent this, as well as working to establish frameworks and disciplines under the FTA to facilitate engagement with the states to prevent further increases in excise and other taxes,” it said.