UK: India warned over imported spirits tax treatment

India has been warned that it must ensure "non-discriminatory tax treatment" for foreign spirits companies, or face a fresh complaint to the_World_Trade_Organisation.

Last year, the Indian government abolished the additional duty levied on imported spirits, although individual states in the country have since introduced their own taxes on spirits from abroad.

"Real progress towards fair market access (in India) was made last year," said the chairman of the Scotch_Whisky_Association, Paul Walsh, today (15 April). "This has helped to create, for the first time, a more level playing field for imported products."

Walsh, who is also the CEO of Diageo, warned, however, that "challenges remain" in the country, "particularly at the state level, where we must work to ensure the introduction of non-discriminatory tax treatment of domestic and imported products.
 
"If such steps are not taken, the industry will not hesitate to return to the WTO in the future to secure fair market access in line with international trade rules and standards," Walsh warned.

"Countries that are increasingly taking the benefits of a rapidly globalising world on one hand, cannot look to protect their own domestic industries and markets on the other."