A Mixed Budget For Whisky Distillers (2012)
21 Mar 2012
The 5% increase in spirits duty in today's Budget penalises the
Scotch Whisky industry and consumers and undermines the growth
agenda for the UK economy, the Scotch Whisky Association (SWA)
The duty escalator Budget rise of 42 pence a bottle (duty and
VAT) means that only Finland and Sweden tax Scotch Whisky more
heavily within the EU.
The SWA welcomed the boost to business from the Government's
immediate and ongoing commitment to reducing corporation tax.
Gavin Hewitt, chief executive of the Scotch Whisky Association,
"The reduction in corporation tax is a welcome boost to business
but by maintaining the duty escalator the Chancellor has undermined
the Government's objectives of encouraging economic growth and
"The Government needs to review the duty escalator which is
harming the Scotch Whisky sector. The industry is vital to economic
growth and supports about 35,000 jobs across the UK. It suffers at
home due to the discriminatory tax regime applied by our own
The SWA is calling for an overhaul of the entire duty regime
through a move towards a system where all drinks were taxed at
about the same rate. Scotch Whisky currently carries some 37% more
duty per unit than beer and is 30% higher than wine. Duty
approximation would deliver an additional £1 billion a year to the
Government to help reduce the national deficit.