A Mixed Budget For Whisky Distillers (2011)
23 Mar 2011
The 7.2% increase in spirits duty will penalise Scotch Whisky
drinkers and distillers, The Scotch Whisky Association (SWA) said
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