Import Tariffs in India are Set to be Lifted on Scotch Whiskey
The lifting of tariffs on Scotch whisky in India is on the horizon. This will provide investors with a huge opportunity to tap into this vast market, a market that continues to grow and is showing no sign of slowing down.
Scotch whisky currently faces a 150% tariff in India, and therefore Indian consumers typically stick to domestic brands. Whilst there is an average of 50 million bottles of whisky sold in the country every year, only 2% of those bottles are from the UK. This will surely change if the tariffs are indeed lifted as is expected.
Plans to Lift Scotch Whisky Tariffs
In July 2021, Liz Truss, the International Trade Secretary, discussed plans to try to remove the tariff levied on Scotland’s beloved spirit. At the time, she said: “We want to remove tariffs and to encourage free green trade – our next target is Indian 150% tariffs on Scotch Whisky.
She added: “We want to invite Scottish businesses into our talks, we want to make sure we are representing your interests, from the farmers to the Tunnocks Caramel wafer producers to whisky distillers; we want to help you take this opportunity.”
Scotch Whisky exports are worth nearly £5bn annually, making the drink the world’s most internationally traded spirit. Notably, the 150% import tariff imposed on Scotch Whisky in India is massive compared to the 5% currently imposed in China and the 25% previously imposed in the US.
The Removal of US Tariffs on Scotch Whisky
In June 2021, the US suspended tariffs on Scotch Whisky and various other UK imports. These tariffs were first put in place by former President Donald Trump in 2019 due to disputes between US and European aircraft manufacturers. The Scotch Whisky Association estimated that these tariffs meant that exports of Scotch whisky to the US dropped by 35%. That is equivalent to over £500 million in lost exports.
Why Should You Invest in Scotch Whisky?
Just like the suspension of US tariffs was, the removal of the 150% tariff imposed on Scotch whisky in India would be fantastic news for Scotch cask investors. This is because the lifting of high tariffs will lead to cheaper prices for the average whisky drinker. In turn, the resultant increase in consumer demand for luxury Scotch whiskies will directly increase the value of your whisky portfolio. As a general rule, an upsurge in the consumption of whisky equals greater returns on your whisky investment!
UKV International AG’s primary business centres around acquiring, supplying, and selling bonded whisky.
We supply for consumption and or investment depending on our client’s requirements and offer a brokerage service for those who wish to sell investment-grade whiskey held in UK regulated bond.
We are here to assist you with choosing which whisky to invest in and to guarantee your cask is put away accurately and safely. Regardless of whether you will drink, gift or sell your whisky.
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