Diageo calls in KPMG for Indian tax battle

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

According to reports, 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.

As well as the 200% spirit tax, the Maharashtra state government has levied a
new 150% tax on imported wine.

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