# Scotch imports under tax probe linked to India-UK trade deal

> Tax officials probe Pernod Ricard and Diageo for wrongly classifying Scotch imports under India-UK trade deal.
- Title: Scotch imports under tax probe linked to India-UK trade deal
- Summary: Tax officials probe Pernod Ricard and Diageo for wrongly classifying Scotch imports under India-UK trade deal. Tax authorities in India are investigating…
- Keywords: pernod ricard, diageo, india uk trade deal, scotch imports, tax probe, import duty, india alcohol market, news, india, Scotch, imports, under
- Source: mint — https://livemint.com/companies/news/scotch-imports-by-pernod-ricard-diageo-under-tax-probe-how-is-it-linked-to-india-uk-trade-deal-all-you-need-to-know-11792559636198.html
- Author: Bobins Vayalil Abraham
- Published: 2026-10-21T05:38:30+00:00
- Read time: 1 min
- Topics: pernod ricard, diageo, india uk trade deal, scotch imports, tax probe, import duty, india alcohol market, news, india
## Tax probe targets Scotch imports
Tax officials in India are investigating Pernod Ricard and Diageo for allegedly misclassifying bulk Scotch imports to claim reduced duties under the India-UK trade deal.

> Tax officials were looking into whether the two companies were eligible for the reduced import duty which came into effect on July 15.
## India-UK trade deal reduces Scotch duties
Under the trade pact that took effect on July 15, India slashed import taxes on Scotch to 75% from 150%.

> Under the trade pact, which took effect on July 15, India agreed to slash import taxes on certain Scotch imports to 75%, from 150%.
## Tax inspectors question companies
Tax inspectors recently visited Pernod's India headquarters near New Delhi to question executives about Scotch imports.

> According to Reuters, last week, tax inspectors made an unexpected visit to Pernod's India headquarters near New Delhi, where they questioned company executives about their Scotch imports.
## Companies under investigation
Diageo and Pernod Ricard dominate India's $65 billion alcohol market and import bulk Scotch concentrates for brands like Royal Stag and Blenders Pride.

> Diageo and France's Pernod Ricard dominate India’s $65 billion alcohol market.
## Companies respond to probe
Pernod Ricard said it is cooperating with tax authorities and providing all requested information, while Diageo stated it has always complied with local laws.

> Pernod, in a statement, told that it is cooperating with the Directorate of Revenue Intelligence and providing all information requested, adding it was committed to addressing any questions from the authorities.
## Pernod faces additional tax issues
Pernod is already under antitrust scrutiny in India and faces a $314 million back-tax dispute over alleged Scotch whisky undervaluation.

> Pernod is already facing antitrust cases in India and faces a $314 million back-tax dispute in India over alleged Scotch whisky undervaluation.
## Key takeaway

Tax authorities in India are investigating Pernod Ricard and Diageo for misclassifying bulk Scotch imports to claim reduced duties under the India-UK trade deal that took effect July 15.