Whisky Duty Flawed. Time for a new Policy
24 Mar 2010
The Budget increase means that spirits duty, which is already
higher than the duty on beer, wine and cider, has risen 21.6% in
the last two years. The duty on a bottle of Scotch Whisky is now
£6.66. The Budget adds 38p tax to the price of a bottle of Scotch
Gavin Hewitt, Chief Executive of The Scotch Whisky Association,
"The Chancellor's duty escalator policy is totally misguided.
The policy has failed.
Revenue from spirits to the Treasury fell by £49m in 2009. Today's
duty rise by a Scottish Chancellor will not secure the increased
revenue that he is looking for and undermines an industry that
brings massive economic benefit to Scotland. He has hit Scotch at
home and set a bad example for duty regimes in our export markets.
Today's decision is worsened by the announcement that the above
inflation rises will continue for an extra two years to 2015.
"After the election the new Government needs to take a long hard
look at the excise duty regime. The escalator should be abolished,
duty on spirits should be frozen and the duty discrimination faced
by Scotch, which the Chancellor has worsened again today, should be
addressed through approximation of duty rates, and eventually duty
equivalence for all alcoholic drinks over the life of the next