India alleges Pernod Ricard hid Scotch specs to dodge 150% tariffs; demand could top $600M
Tax authorities accuse Pernod Ricard India of using India-only malt codenames to mask Scotch composition and age, undervaluing imports by 67% to evade 150% duties. Back-tax claim sits at $314M and may exceed $600M with penalties—roughly a fifth of India revenue—threatening pricing on Chivas, Royal Stag and Absolut in its largest volume market.
Indian investigators allege Pernod Ricard hid Scotch composition and age via India-only malt codenames to undervalue imports by 67%, evading 150% tariffs. Tax demand stands at $314M, could exceed $600M with penalties—a fifth of India revenue.