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Support the
Scotch Whisky Associations campaign for a drop in
Whisky Duty, express you support on
Twitter
#dropthedramduty
Following Chancellor Philip Hammond's
hike in the spirits tax in this years March
budget it will come as no
surprise to those of you with a bit of
common sense that a fall in Scotch whisky
sales followed but what is surprising,
in fact quite shocking, is
just how much sales have fallen since
Philip Hammond's hike in tax.
Official HMRC figures show 36.7 million
bottles were released for sale in the
first six months of 2017 - which is
1 million bottles down from the 37.7
million bottles released in the same
period last year.
The 2.6% fall follows the Chancellor's
decision to increase spirits duty in the
spring Budget by an inflation-busting
3.9%, meaning tax now makes up an
astonishing 80% of the cost of a bottle
of Scotch. Of an average bottle sold at
£12.77, more than £10 goes straight to
the Treasury.
Following this huge drop in domestic
demand here in the UK, the Scotch Whisky
Association has launched a
#dropthedramduty campaign urging
Philip Hammond to cut excise duty on
spirits to protect the UK's leading food
and drink export which supports 40,000
jobs.
HMRC figures also show the tax take from
spirits has actually fallen since Philip
Hammond's spring increase - meaning less
money for the Treasury. Spirits revenue
was down more than 7% in the first
financial quarter of 2017/18 to £697
million from £751m in the same period
from April to the end of June the
previous year.
In contrast, a 2% cut in 2015 saw
spirits revenue rise by 4% - giving a
£124 million boost to the Treasury. And
a freeze in 2016 led to a revenue
increase of more than 7%, pouring an
additional £229 million into the
Chancellor's coffers.
Surely the figures speak for themselves,
Philp Hammond's spirit tax hike has
clearly impacted sales and it would be a
common sense business move for the UK
for Philip Hammond to
#dropthedramduty before he impacts the UK economy and jobs.
Karen Betts, Scotch Whisky Association
chief executive, said: "Philip Hammond's
damaging 3.9% spirits duty hike has hit
UK demand for Scotch and seen less money
going to the Treasury.
"The Chancellor should use his November
Budget to Drop The Dram Duty and boost a
great British success story.
"Cutting tax would send a strong signal
that the Government believes in a
world-famous UK manufacturing industry
which supports 40,000 jobs and plays a
key role in Scotland's economy."
Philip Hammond failing to reduce tax in
the forthcoming November budget to
remedy the negative impact he has had on
whisky sales and the income for the
treasury would be unacceptable and
serious questions would have to be asked
about his suitability to hold the
position of Chancellor.
Show your support on twitter for
#dropthedramduty and help encourage
Philip Hammond
to do the right thing. You will also
find me
@ScotMaltWhisky on Twitter
tweeting about all things WHISKY so why
not give me a follow.
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