Scrapping of additional duty on liquor - three cheers from all over the world
Normally India does not get any coverage in the world press. Remember George Bush did not know the name of the Prime Minister of India when he was asked that question in a pre election press quiz in 1999?
But an innocuous notification of the CBEC has received banner headlines right across the world. Such is the power of spirits! And Gandhi's India is the largest liquor market!. Here are some of the screaming headlines and stories from the Western media.
India scraps additional duty on foreign liquor
Monsters and Critics.com,UK
India has scrapped additional customs duties on imported liquor including wine and beer, in keeping with its World Trade Organization (WTO) commitments, news reports said Thursday.
The United States and the European Union had complained to the WTO earlier this year that the additional duties levied by India on imported spirits went against India's commitments to the international trade body.
INDIA: Gov't caves to customs duty pressure
just-drinks.com editorial team
The Indian government has confirmed that it has withdrawn the additional customs duty on imported spirits, wine and beer.
A spokesperson for the Central Board of Excise and Customs confirmed the move late yesterday (3 July).
The basic customs duty on wines, however, will rise from 100% to 150%, the CBEC noted.
The move follows growing pressure from the EU and the US, both of whom have opposed what they have called the "additional" and "extra-additional" duties applied by the country to their spirits exports.
India Scraps Additional Tax on Liquor After U.S., EU Complain
Bloomberg USA
India, the world's biggest whiskey market, scrapped an additional import tax on liquor, wine and beer after the U.S. and the European Union complained the duty curbed demand for products such as Jack Daniel's whiskey.
India removed the duty that ranged from 20 percent to 150 percent, the finance ministry said in a statement. It lifted the basic import tax on wine to 150 percent from 100 percent.
U.S. makers of spirits estimate the Indian market is worth more than $14 billion a year and say it is protected by tariffs high enough to keep out almost all American-made products. Lower Indian import tariffs may benefit European liquor companies such as Diageo Plc and Pernod-Ricard SA that are seeking growth in the world's second-most populous nation.
Import duties, including the extra levies, of as much as 550 percent helped keep out foreign competitors, according to the EU. Some of India's trading partners complained that the additional customs duty isn't equal to the excise duty rates on similar products in some Indian states, the ministry said.
The World Trade Organization had agreed on June 20 to investigate a U.S. complaint against India's alcohol imports that said India imposed ``excessive'' tariffs on imported wine and distilled spirits.
Exports of U.S. spirits to India were valued at $540,000 last year, Washington-based Distilled Spirits Council said.
India's spirits market, comprising whisky, rum, brandy and vodka, grew an average 8.3 percent to 1.96 billion liters in five years to 2006, according to Euromonitor. The sale of wines rose 18 percent annually to 5.4 million liters.
Consumption of spirits is forecast to grow at an average annual rate of 8.5 percent by 2011. The wine market is projected to grow 14.5 percent annually to 10.5 million liters in the same period, the London-based Euromonitor said.
India scraps additional customs duty on liquor; ups basic duty on wine
Forbes USA
India has withdrawn the additional customs duty levied on imported liquor, wine and beer, but has increased the basic customs duty on wines from 100 pct to 150 pct -- the ceiling imposed by the World Trade Organisation, local dailies The Financial Express and The Economic Times reported.
Spirits and liquor will continue to attract the basic customs duty of 150 pct, the papers said, citing a government release.
The move comes days ahead of the meeting of a WTO panel to mull a series of complaints made by the European Union and the US to the WTO regarding India's discriminatory tariff structure for imported wines and liquors. Australia, Chile and Japan have also lodged protests against the tax structure.
The government could lose 0.6 bln Indian rupees annually by removing the duty,
EU welcomes India's move on wine, spirits duty
Reuters UK
BRUSSELS, July 4 - The European Union welcomed India's withdrawal of an extra customs duty on imported wines and spirits, but said it was too soon to say whether World Trade Organisation action over the case would be scrapped.
The EU and the United States have pressed India to cut its additional wines and spirits duties, which Brussels says go as high as 550 percent for spirits and 264 percent for wines.
India's government said on Tuesday it would withdraw the additional duty.
"The reported removal of the discriminatory duties is good news for European spirit and wine makers, who have been badly disadvantaged by Indian measures for many years," an EU official said on Wednesday.
"We have to study in detail the Indian action, so it is a bit premature to speak about the suspension of the panel procedure at this point," the official said.
The EU kicked off action against India at the WTO in December last year and escalated it in March by seeking a dispute resolution panel at the Geneva-based arbiter of global trade rows.
The EU official said Brussels regretted a move also announced by India on Tuesday to raise its basic customs duty on wines by half to 150 percent, the same level as for spirits.