Business · India Bureau
Tax authorities scrutinize Scotch whisky imports under India-UK trade deal
Indian tax officials are examining whether major spirits importers including Pernod Ricard and Diageo are correctly claiming preferential duties on bulk Scotch whisky shipments under the recently concluded India-UK free trade agreement. Both companies have confirmed they are cooperating with the authorities in the ongoing probe.
LSN India ·
Tax department officials have initiated an investigation into the tariff classification of Scotch whisky imports by leading multinational spirits companies, according to sources familiar with the matter. The scrutiny focuses on whether bulk consignments qualify for reduced duty rates under the India-UK trade pact that came into effect earlier this year.
Pernod Ricard and Diageo, two of the world's largest spirits producers with significant operations in India, are among the companies under the tax department's lens. Both firms have substantial interests in the Indian spirits market and have been actively importing Scotch whisky to cater to domestic demand.
A spokesperson for Pernod Ricard stated the company is "fully cooperating with the tax authorities" regarding the matter. Diageo similarly confirmed its engagement with officials, emphasizing its commitment to compliance with Indian trade regulations and tariff requirements.
The investigation underscores ongoing scrutiny of how Indian businesses and foreign companies are interpreting and implementing the new trade agreement provisions. Trade pacts often contain complex rules governing duty rates based on product classification, origin, and processing standards, requiring careful compliance from importers.