Industry & Economy
-
Breweries
Foreign liquor lobby to seek WTO action against India
Our Bureau
|
No move to reduce duties on imported liquor in Budget
|
Advertisement
|
|
Bangalore
March 1
The foreign liquor lobby will ask the European Union to activate WTO dispute proceedings against India following the Government's failure to reduce duties on imported liquor in the Union Budget.
International Association of Wines & Spirits in India Chairman, Mr Amrit Kiran Singh, told Business Line that the dispute resolution body would be activated to proceed against the Indian Government.
The Scotch Whisky Association, as well as the EU, have repeatedly asked the Government to lower duties on imported liquor so that it aligns itself with international trade norms. At present, all imported liquor is subjected to additional tariff, which add up to duties in excess of 500 per cent.
"We were holding back our plans to ask the EU to activate the proceedings against the Government as we expected the Government to reduce imports in the Union Budget," Mr Singh said. But with the Government failing to take any steps, both the EU as well as the Indian Government could be headed for a confrontation.
Major whisky market
India is seen emerging as a major whisky market with nearly a million cases of spirits being imported into India. Mr Singh, who is also the Area Director for South Asia for Brown-Forman, which makes Jack Daniels, said investigations over India's high tariff regime had already been conducted. "Now we need to step up our efforts to resolve the issue," he said.
Liquor analysts say that in case United Spirits takes over the UK-based Whyte & Mackay, the Indian Government could look at reviewing its decision on not to reduce import duties. The Vijay Mallya-owned United Spirits would be keen to promote Whyte & Mackay brands in India through its distribution channels and hence might join the lobby for reduction of duties.
More Stories on :
Breweries |
WTO |
Budget
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
