India has reduced its bourbon whiskey duty from 150% to 100%, which is anticipated to help imports of popular American brands like Jim Beam from Suntory.
The ruling was made the day after US President donald trump denounced India's "unfair" taxes on American goods, namely those related to the alcoholic beverage sector. According to a february 13 government announcement that made headlines Friday, the baseline customs charge on bourbon whiskey is now 50%, plus an extra 50% fee, making the total 100%. Previously, imports of bourbon were taxed at a high rate of 150%. But only bourbon is eligible for this cut; levies on other alcoholic drinks are still at 150%.
The action represents a significant change in India's import taxes on American goods and is anticipated to mostly favor US bourbon manufacturers. PwC india partner Pratik Jain emphasized that this change shows India's readiness to reevaluate pricing with important strategic partners, especially in sectors like spirits.
The decision was made amid persistent worries from international companies about India's high import taxes, particularly in the $35 billion spirits sector. Leaders in the industry, such as those from Diageo and Pernod Ricard, have long maintained that trade and market development is hampered by the nation's high taxes on imported alcohol.
The Brewers Association of India's director general, Vinod Giri, characterized the bourbon duty cut as a calculated step meant to allay US worries and prevent any reprisals. Giri said, "Tariffs on bourbons, like motorbikes, have high optics value," suggesting that the ruling was meant to reassure the united states of India's fair trade commitment.
About one-fourth of India's total bourbon imports come from the US, which continues to be the country's top supplier of bourbon whiskey. india imported $2.5 million worth of bourbon whiskey in 2023–2024. The united states ($0.75 million), United Arab Emirates ($0.54 million), singapore ($0.28 million), and italy ($0.23 million) were the top exporting nations.
The ruling was made the day after US President donald trump denounced India's "unfair" taxes on American goods, namely those related to the alcoholic beverage sector. According to a february 13 government announcement that made headlines Friday, the baseline customs charge on bourbon whiskey is now 50%, plus an extra 50% fee, making the total 100%. Previously, imports of bourbon were taxed at a high rate of 150%. But only bourbon is eligible for this cut; levies on other alcoholic drinks are still at 150%.
The action represents a significant change in India's import taxes on American goods and is anticipated to mostly favor US bourbon manufacturers. PwC india partner Pratik Jain emphasized that this change shows India's readiness to reevaluate pricing with important strategic partners, especially in sectors like spirits.
The decision was made amid persistent worries from international companies about India's high import taxes, particularly in the $35 billion spirits sector. Leaders in the industry, such as those from Diageo and Pernod Ricard, have long maintained that trade and market development is hampered by the nation's high taxes on imported alcohol.
The Brewers Association of India's director general, Vinod Giri, characterized the bourbon duty cut as a calculated step meant to allay US worries and prevent any reprisals. Giri said, "Tariffs on bourbons, like motorbikes, have high optics value," suggesting that the ruling was meant to reassure the united states of India's fair trade commitment.
About one-fourth of India's total bourbon imports come from the US, which continues to be the country's top supplier of bourbon whiskey. india imported $2.5 million worth of bourbon whiskey in 2023–2024. The united states ($0.75 million), United Arab Emirates ($0.54 million), singapore ($0.28 million), and italy ($0.23 million) were the top exporting nations.
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