Over £1 Billion Boost From Duty Reform For Government
01 Sep 2010
In its submission to the UK Government's alcohol tax review, the
Association is calling for reform of the duty system so that all
drinks are taxed on the same basis, according to alcohol
Independent analysis for the Association has shown that between
£1bn and £2bn more tax revenue a year could be generated for the
Government under such a system.
At present alcohol served as Scotch Whisky is taxed 250% more
than the same amount of alcohol sold as cider, 37% more than for
beer and 30% more than wine.
Combined with a ban on sales below tax to set a legal 'floor
price' and ensure the duty is paid by consumers, the Association
said reform could help boost the public finances and address
politicians' concerns over low priced drinks, whilst also being
consistent with EU tax rules.
Gavin Hewitt, SWA Chief Executive said: "The modern alcoholic
drinks market is highly competitive, yet competition is distorted
by a tax system based on the market of the 1920s.
"Reform is long overdue and could bring a double benefit to
Government; greater revenue and a route to tackle low priced
drinks. Tax based on alcohol content is a fair and socially
responsible way forward."