Scotch on the Rocks: Whisky Industry Calls for Tax Relief to Maximize India Trade Deal
The Scotch whisky industry urges the UK government to address tax burdens to fully benefit from a trade deal with India, which significantly reduces tariffs. Despite the FTA benefits, distillers face pressure from domestic taxes, U.S. tariffs, and global trade challenges impacting exports.
- Country:
- United Kingdom
The Scotch whisky industry has urged the UK government to ease tax burdens on distillers to maximize the benefits of a newly signed Free Trade Agreement (FTA) with India. The trade deal, signed during Prime Minister Narendra Modi's UK visit, aims to halve Scotch whisky tariffs over time.
The industry's call comes as the cost of exporting whisky to India reduces from 150% to 75%, with a further drop to 40% expected over the next decade. However, Mark Kent, Chief Executive of the Scotch Whisky Association, emphasized the need for immediate government support amid existing pressures, including U.S. tariffs and UK taxes.
The trade body lauded the FTA as historic, marking a significant milestone in tariff reduction. With India as the top export market by volume, the deal opens substantial opportunities. Meanwhile, decrease in export value demands continued government backing, highlighting the industry's economic impact and tourism value.
(With inputs from agencies.)
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