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Budget response

News and announcements from the Whisky Magazine team

Budget response

Postby Rob Allanson » Wed Mar 23, 2011 4:41 pm

A MIXED BUDGET FOR WHISKY DISTILLERS - Disappointment at 59p a bottle excise duty rise - - Distillers welcome corporation tax and fuel duty reductions -
The 7.2% increase in spirits duty will penalise Scotch Whisky drinkers and distillers, The Scotch Whisky Association (SWA) said today.
The SWA has, however, welcomed the Chancellor's announcements on corporation tax, fuel duty and help for manufactured exports.
The excise duty rise increases the tax discrimination faced by Scotch Whisky and other spirit drinks. Today's Budget means that the duty on a bottle of Scotch - nearly 40% higher than the duty per unit on beer and 30% higher than wine - will rise by 59p (duty and VAT).
The increase, which comes on top of a 22% duty rise since 2008, has widened the tax gap with other alcoholic drinks.
Commenting on the excise duty rise, Gavin Hewitt, Scotch Whisky Association Chief Executive, said:
"Today's 59p a bottle tax rise unfairly penalises responsible whisky drinkers and a key UK industry. Our alcohol duty system does not meet the principles of good tax policy set out by the Chancellor. Alcohol duty reform is urgently needed. The system discriminates against Scotch Whisky in favour of other alcoholic drinks, undermining an industry that should be at the heart of the Chancellor's export led growth agenda."
On corporation tax and fuel duty, Mr Hewitt said:
"The changes promised to corporation tax and increased support for manufactured exports will allow distillers to invest for long term growth in overseas markets. Given that distilleries are often in remote rural communities the cut in fuel duty is very welcome."
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Re: Budget response

Postby Muskrat Portage » Thu Mar 24, 2011 5:54 am

Ouch! didn't see that coming! That will have far ranging effects over here I fear. Damn!
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Re: Budget response

Postby ingoodspirits » Sun Mar 27, 2011 1:38 pm

That's just following the duty escalator that has already been set for the past couple of years. There's nothing new there and that was expected. It's 2% above the rate of inflation which is currently 4.4%, making it 6.4%. I'm not sure how they reach 7.2% in their statement.
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Re: Budget response

Postby Muskrat Portage » Sun Mar 27, 2011 3:28 pm

Rob: I was at a tasting last night and brought this increase up, much to the chagrin of the attendees. It is timely information like this that allows us to react proactively (buying our whisky before the price hike) rather than reactively. Thank you.
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