Ouch! Tax hit for UK spirits… The Scotch Whisky Association (SWA) has slammed the decision by the Chancellor to raise duty on Scotch Whisky by 10.1%, in one of the largest tax hikes in recent decades, and further increase the competitive disadvantage faced by spirits - breaking the UK government’s pledge to “review alcohol duty to ensure our tax system is supporting Scottish whisky.” In the budget, the Chancellor increased duty across all four alcohol categories, with relief provided for on-draught products, which make up less than half of those sold behind the bar and not available to 99% of distillers. The duty rate on spirits will rise to £31.64 per litre of pure alcohol, meaning that of the £15.22 average price of a bottle of Scotch Whisky, £11.40 is collected in taxation through duty and VAT. The tax burden on the averaged priced bottle of Scotch Whisky has risen from 70% to 75%. The SWA had called on the UK government to continue the freeze announced by the UK government back in December. Instead, HM Treasury has further added to the UK tax burden on the Scotch Whisky industry in the UK which is already the highest among the G7 developed economies. The industry has said that the decision to increase duty will inevitably fuel inflation, further dent consumer confidence, and add to pressures in the hospitality industry. Commenting on the Budget, Chief Executive of the SWA Mark Kent said: “This is an historic blow to the Scotch Whisky industry. The largest tax increase for decades means that 75% of the average priced bottle of Scotch Whisky will be collected in tax, reducing already tight margins for an industry which employs tens of thousands of people and invests hundreds of millions annually across the UK.
Posted by Ian - 101 Whiskies - Buxton at 2023-03-15 14:11:28 UTC