Govt slashes obligation on bourbon, some wines amid US risk | India Information

NEW DELHI: Amid stress from the USA, govt has slashed the import obligation on bourbon whiskey from 150% to 100% and lowered tariffs on a number of types of wines.
Responsibility on wines manufactured from contemporary grapes, and vermouth, in addition to another fermented drinks and unadulterated ethyl alcohol with 80% alcohol energy have been minimize to 100%. The import of those merchandise collectively added as much as round $1 billion over the last monetary 12 months.
In case of bourbon, the essential customs obligation has been mounted at 50%, whereas agricultural cess of fifty% has additionally been imposed. Final 12 months, the imports of the 2 tariff strains associated to bourbon had been estimated at $2.6 million, whereas these from the US had been pegged at $0.8 million.
The obligation cuts had been notified on Thursday, hours earlier than PM Narendra Modi’s assembly with US president Donald Trump, the place tariffs had been on the centerstage of the discussions. Trump reiterated his promise to impose what he referred to as reciprocal tariffs to maintain American trade aggressive. Simply earlier than assembly Modi, he had additionally stated that India had among the many highest tariffs on this planet.
India’s obligation on whisky and different alcoholic drinks have been an space of concern for many – from Australia to the UK, the European Union, Switzerland and the US. Whereas India has slashed duties on Australian wine as a part of the commerce settlement, the UK has been placing stress to decrease the levy for Scotch as a part of the commerce negotiations. Equally, EU has been demanding a minimize for wine produced within the buying and selling bloc.
Within the Funds introduced on Feb 1, govt had slashed import obligation on a variety of merchandise, together with high-end bikes, comparable to the enduring Harley Davidson, in a transfer seen to be centered on escaping the warmth on tariffs. However that has not stopped Trump from elevating issues over duties in India as he cited Harley Davidson for instance throughout an interplay with the media.