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Disappointment at 59p a bottle excise
duty rise.
Distillers welcome corporation tax and
fuel duty reductions.
 The
7.2% increase in spirits duty will
penalise Scotch Whisky drinkers and
distillers, The Scotch Whisky
Association (SWA) said today.
The SWA has, however, welcomed the
Chancellor’s announcements on
corporation tax, fuel duty and help for
manufactured exports.
The excise duty rise increases the tax
discrimination faced by Scotch Whisky
and other spirit drinks. Today’s Budget
means that the duty on a bottle of
Scotch – nearly 40% higher than the duty
per unit on beer and 30% higher than
wine – will rise by 59p (duty and VAT).
The increase, which comes on top of a
22% duty rise since 2008, has widened
the tax gap with other alcoholic drinks.
Commenting on the excise duty rise,
Gavin Hewitt, Scotch Whisky Association
Chief
Executive, said:
"Today’s 59p a bottle tax rise unfairly
penalises responsible whisky drinkers
and a key UK industry. Our alcohol duty
system does not meet the principles of
good tax policy set out by the
Chancellor. Alcohol duty reform is
urgently needed. The system
discriminates against Scotch Whisky in
favour of other alcoholic drinks,
undermining an industry that should be
at the heart of the Chancellor’s export
led growth agenda."
On corporation tax and fuel duty, Mr
Hewitt said:
"The changes promised to corporation tax
and increased support for manufactured
exports will allow distillers to invest
for long term growth in overseas
markets. Given that distilleries are often
in remote rural communities the cut in
fuel duty is very welcome."
What you will
now pay for a bottle of whisky:
Today’s duty rise increases the duty on
a 70cl bottle from £6.66 to £7.15. With
VAT (20%) charged on that extra duty,
the total tax uplift on each bottle is
59p. The current average price of a 70cl
bottle of Blended Scotch Whisky in the
UK is £11.27.
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