| The Government on Tuesday removed the additional customs duty, imposed in lieu of State-level excise duty, on spirits/ liquor, wine and beer imports into the country.
Simultaneously, the Government has also hiked the basic customs duty on wines from 100 per cent to 150 per cent (WTO bound rate). Spirits/liquors will continue to attract the basic customs duty of 150 EU, US complaint
An official release said that some of Indian trading partners (mainly European Community and the US) have been complaining that the additional duty of customs was not equivalent to an internal tax within the meaning of GATT 1994, as the additional duty of customs exceeds the Excise Duty Rates on like products in some Indian States.
Taking into consideration all relevant factors, and after consultation with the State Governments, it has been decided to withdraw the additional duty of customs (in lieu of State Excise Duty) on imported spirit/liquor, wines and beer, the release added.
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