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KPMG aids Diageo in Indian whisky battle

Global spirits giant
Diageo,
maker of Johnny Walker, has hired KPMG as it prepares for a major tax battle
with the Indian government.

A team from KPMG’s Australia office will fly to India this week to begin work
on a detailed case against a new whisky tax. The consultants will have the
backing of the Scotch Whisky Association and Discus, the US spirits trade body.

Diageo is fighting the legality of a 200% tax on Scotch imposed in India’s
largest city of Mumbai, despite a ruling by the World Trade Organisation and a
decision by the Indian state government of Maharashtra to slash import duty.

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