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	Embassy and Industry combine to maximise tax cut benefit

		Britain's Ambassador to Tokyo, Sir David Wright, will today make a celebratory visit to the Scotch Whisky industry to mark the culmination of a 20 year campaign to beat tax discrimination against Scotch in Japan. The success of the campaign means tax cuts for Scotch of over £2.00 a bottle over the next 18 months.
		Sir David will visit Glenkinchie Distillery near Pencaitland, The Scotch Whisky Association in Edinburgh, and Invergordon's bottling and blending site in Leith.
		Sir David will discuss with the industry how best to take advantage of the tax changes for sales of Scotch in Japan, and how the Embassy can support brand owners in their efforts in the market.
		Japan is the fifth largest export market for Scotch Whisky, worth £129 million in 1996. At present, Scotch is taxed there up to seven times more heavily than the local spirit, shochu. But the World Trade Organisation has told Japan to remove this discrimination from its liquor tax system.
		As a result, the tax on Scotch will drop on 1st October 1997 by £1.60, and again on 1st October 1998 by a further 50 pence. At the same time, the tax on shochu, the locally made spirit, will go up, removing the tax advantage it has consistently enjoyed.
		Moves to capitalise on the new market opportunity have already begun. In April this year, The Scotch Whisky Association, Scottish Trade International and the Embassy combined to support the largest ever Scotch Whisky trade mission to Japan. Over 20 Scotch Whisky firms took part in trade seminars and exhibitions.

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