Ban On Sales Below Tax Welcomed By Whisky Distillers
18 Jan 2011
Scotch Whisky distillers have campaigned for over two years for
such a measure to be
introduced as a legal way to set a floor price for alcoholic
drinks. The SWA also called today for the same floor price
arrangements to be introduced in Scotland.
With a bottle of beer, wine or spirits displaying the alcohol
content and carrying a known tax burden, enforcement of a ban on
sales below excise duty and VAT is simple to operate and
The SWA supports the proposed ban as part of a two stage
approach to modernising the UK alcohol duty regime. A floor price,
where a unit of beer is taxed at 21p and of whisky at 29p,
highlights the differential taxation of alcoholic drinks and
reinforces the need for a fairer excise duty system, with all
drinks taxed on the same basis according to alcohol content.
Gavin Hewitt, SWA Chief Executive, said:
"A ban on alcohol sales below the cost of excise duty and VAT is
the right way forward. The next stage should be reform of an
outdated duty system so that tax discrimination between drinks
categories is removed and consumers are treated fairly whatever
drink they prefer. The Budget in March offers an early opportunity
to begin to introduce a fairer balance in alcohol taxation."