INDIA OFFERS TO SLASH WINE AND SPIRIT DUTY
INDIA OFFERS TO SLASH WINE AND SPIRIT DUTY
Jun 20, 2013 6(TheDrinksBusiness) - India is understood to have offered a dramatic cut to its current 150% import duty rate for wines and spirits as part of ongoing negotiations for a free trade agreement with Europe.
According to Business Standard, India’s commerce & industry minister Anand Sharma suggested to EU trade commissioner Karel de Gucht that the country was prepared to slash duty levels to 40%, half the level that had previously been proposed.
Although rumours of such a concession emerged a year ago, Sharma is reported to have voiced his offer during a recent summit of the Organisation for Economic Co-operation and Development as part of free trade negotiations that have been ongoing since 2007.
In a further step, Sharma offered a cut in the price of wine above which this 40% duty level would be applied to US$3.7 and $5 for whisky.
Despite these gestures, the EU is reported to be pushing for a further duty reduction to 30%, with an entry price of $3.5 for both wine and whisky.
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