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JAPANESE
TAX REFORM ON SCOTCH BROUGHT FORWARD - SECOND TAX CUT
FIVE MONTHS EARLY |
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Scotch Whisky sales in
Japan are set to receive their second boost in seven
months with the announcement that reform of the Japanese
liquor tax system is to be speeded up. |
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The
tax on Scotch Whisky in Japan was cut by 44 per cent two
months ago, on October 1. A second cut of 26 per cent,
scheduled for October 1 1998, will now be brought forward
five months to May 1, when tax on a bottle will fall by
70 pence. |
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At
the same time the tax on the local spirit, shochu, will
rise. |
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As
well as liquor tax reform, Scotch will also benefit from
further cuts in import tariffs and their elimination by
the year 2002 instead of 2004. |
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The
Director General of The Scotch Whisky Association, Hugh
Morison, said: "Initial indications from Japan are
that sales of Scotch have grown substantially since the
tax reduction of October this year. This acceleration of
the timetable removing tax discrimination against Scotch
Whisky, and the cuts in import tariffs, are excellent
news, and promise to make 1998 an exceptionally good year
for Scotch Whisky in Japan." |
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The
reform package is as a result of a ruling by the World
Trade Organisation. |
