In 2008 Hong Kong abolished the tax on Fine Wine, the result was one of the fastest periods of increased Fine Wine prices that we have seen in the last 30yrs. So when India decides to follow suit many people believe another similar story could be about to be written.
Currently in India imported wines currently face a 150pc tariff in India as well as an “extra additional duty” of 4pc. This is before any additional taxes imposed by India’s individual states. These range from 30pc to more than 100pc and have made investing in wines relatively unattractive.
The new agreement looks to see import duties slashed to just 40pc, boosting the sale of investment-grade wine. Looks like interesting times for Fine Wine market are on the horizon.