SWA welcomes EU request for WTO ruling on tax
discrimination in India
T
he
Scotch Whisky Association (SWA) has welcomed the decision of
the European Union to seek the establishment of a WTO dispute
settlement panel to rule on India's discriminatory tax regime
for imported spirits and wines. The EU has asked that its
request be considered by the WTO at a meeting on 11 April.
The
request follows an EU investigation that found the Indian
fiscal regime for imported spirits and wines to be in 'blatant
violation' of WTO rules and unfairly distorting competition.
Of particular concern to Scotch Whisky distillers is the
'Additional Duty', which is levied on imports in a
discriminatory manner and protects domestic producers contrary
to WTO rules. When the high 'Basic Customs Duty' is added,
imported spirits face an overall tariff burden of up to 550%.
Gavin
Hewitt, the SWA Chief Executive, said: "Scotch Whisky
distillers have long campaigned for fair access to India. The
EU's decision is welcome and sends a clear message to India
that it must act now to reform its tax regime or face a
dispute panel. We hope the Government of India will seize the
opportunity and move to reform the system in the coming days
in line with international rules."
In a
statement, Peter Mandelson, the EU Trade Commissioner, said:
"India has maintained extremely high duties on imported
spirits and wines for many years. They
restrict European exports and are in clear breach of WTO
rules. As we could not resolve our dispute in consultations,
the EU sees no other way than to request the establishment of
a WTO panel. We are of course not closing the door to an
amicable solution - but the ball is now in India's court."
