UK: Drinks trade slams stealth duty rise in UK
The spirits industry in the UK has attacked the latest duty increase introduced in the country in an attempt to ward off the global economic crisis.
The UK Chancellor of the Exchequer, Alistair Darling, yesterday announced an 8% rise in the duty on alcohol in the country, to match a reduction in value added tax (VAT) from 17.5% to 15%. According to the Scotch Whisky Association, the rise will add another GBP0.29 (US$0.44) on to a standard bottle of Scotch in the UK, following a GBP0.59 tax increase announced in March.
"There is no logic to any duty increase," said the SWA's CEO, Gavin Hewitt. "Alcohol revenues have already fallen by GBP40m this year on the back of the 9% excise rise in March. The Treasury is likely to lose more revenue at a time when it needs every penny."
The director general of the Gin and Vodka Association, Edwin Atkinson, echoed Hewitt's sentiments. "The Chancellor cannot have it both ways," he said. "If he wants more revenue, he will not achieve it by increasing taxes.
"This unplanned duty change coming at such short notice before Christmas will hit businesses very hard but the smaller traders without credit capacity will find life particularly difficult."
Meanwhile, Mark Hastings, director of communications at the British Beer and Pub Association, described the increase as "truly staggering", warning that, "with pubs closing at record rates and beer sales at their lowest since the Great Depression, this sector needs a fiscal stimulus just as much as the rest of the economy.
"There is genuine dismay and disbelief that the Chancellor is turning a deaf ear and a blind eye to the economic plight of Britain's traditional beer and pub sector."
The latest duty rise, added to the temporary VAT cut, translates into a 4% increase in tax on a bottle of whisky, the SWA noted.
Having not made a major acquisition for a couple of years, Campari was back in the spotlight last month when it acquired Wild Turkey Bourbon from Pernod Ricard. Campari CEO Bob Kunze-Concewitz spoke w...
Spirits such as soju and cachaça may be less well known than vodka and whisky, but according to a new report from IWSR and just-drinks, could offer considerable benefits to multinationals, both in und...
The top ten stories published on just-drinks this week:...
Ian Macleod Distillers has lined up the launch of two 40-year-old single malt Scotch whiskies....
William Grant & Sons has launched an online social network for Glenfiddich, making it the latest Scotch whisky brand to build a community for its consumers....
Jamaican rum distiller Appleton Estate is to launch a print campaign in the UK aimed at attracting premium Scotch and whisky drinkers....
Anheuser-Busch InBev has teamed up with Nascar driver Richard Petty for a 'Budweiser responsibility' campaign aimed at reminding fans to use a designated driver when drinking....
Raising national tax on alcoholic drinks and sugar-sweetened soft drinks should be considered as a way of paying for healthcare reform in the US, an influential Senate Committee has said....
- Spirits - Where does 'Craft' End and 'Mass' Begin?
- Brewers go Crazy over Flavoured Malt “Cocktails”
- What do A-B InBev results mean for SABMiller deal?
- Anheuser-Busch InBev's FY Performance by Region
- Much Work to do on Packaging in the US
- Diageo "smart bottle" targets consumers at home
- Tesco reinstates Dan Jago following suspension
- Suntory whiskey seeks to "eclipse" Diageo, Pernod
- Tough US hits Mast-Jagermeister volumes in 2014
- Diageo adds Dubai to Johnnie Walker skyline series
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Wine, 2014 and the future
- Spirits and RTDs, 2014 and the future
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report