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  As a tax barrier tumbles in Japan . . .
GET RID OF THE TAX BARRIER AT HOME, DISTILLERS URGE THE GOVERNMENT
    Scotch Whisky producers, gathering in Glasgow today (Monday 20 April) for their Annual Meeting, heard Scotch Whisky Association Chairman, John McGrath, congratulate them on another record export year in 1997 - with export sales up 5 per cent to £2.4 billion - and urge guest of honour, Secretary of State for Scotland, Donald Dewar MP, to press the Government to deliver equal tax treatment for Scotch Whisky and other drinks in their home market, the UK, and to think again about the abolition of duty free in Europe.
    Mr McGrath told Mr Dewar: "We receive unswerving support from the Government in tackling trade barriers overseas. Amongst the most important recent successes has been Japan, where - after a hard fought campaign going back nearly 20 years - the first tax cut came into effect in October, with a further cut due next week.
    "After all that, the price of a bottle of Scotch will have come down by some £2.30, a fine example for any Government, including our own.
    "My firm message to the Government today, therefore, is this: in addition to supporting us on trade barriers world-wide, give us a new tax structure in the UK. Continue the fight for fair tax treatment in Europe. And until that is in place, think again about the abolition of duty free shops which - since tax is levied at the same rate for all: zero - provide the only genuine Single Market in Europe for alcoholic drinks, where Scotch Whisky competes on a level playing field with wine."
    Mr McGrath also told the Secretary of State that the Scotch Whisky industry looked forward to working with the forthcoming Scottish Parliament, which he confidently expected would provide a new and effective lobby for Scotland and for Scotch, both at Westminster and in Brussels, to secure the position of Scotch as Scotland’s foremost traditional industry.
   
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