The UK Duty Burden
03 May 2010
Current excise duty policy - increasing alcohol duty by 2% above
inflation every year up to and including 2015 entrenches the tax
discrimination faced by Scotch Whisky in the UK. Every year the
duty gap with other drinks widens, damaging competitiveness.
- Scotch Whisky is taxed more heavily than other alcoholic
- The annual excise 'escalator' should be abolished and duty
- A typical 70cl bottle of Scotch Whisky costs £10.85, the
Government takes more than 75% in tax.
- The £10.85 breaks down like this: Excise Duty at
£6.66, VAT at £1.62, total tax (76% of price) at £8.28 and Scotch
Whisky at £2.57.
The Scottish Whisky Association
The Government should review its policy of pre-determined excise
duty rises up to 2015. The annual excise 'escalator' should be
abolished and duty frozen. Industry competitiveness is being harmed
at a time of challenging economic conditions at home and