just the facts - UK Budget at a glance
By just-drinks.com editorial team | 24 March 2010
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Darling raises alcohol tax |
A hefty tax hike looms for cider, following Chancellor Alistair Darling's announcement of the UK Budget for 2010. Here, just-drinks summarises the key points for the drinks sector.
- Alcohol duty tax to rise by 2% above inflation from midnight on Sunday (28 March). Inflation stands at 3%, according to the Government, so that means a 5% tax rise in real terms.
- Cider tax to rise by 10% above inflation (13% in real terms), to correct a "long standing anomaly" to tax on other drinks.
- From September, the definition of cider will also be changed so that strong cider is "taxed more appropriately", said the Chancellor, without giving further details.
- Alcoholic drinks tax will also rise by 2% above inflation each year for the next two years, as originally set out in the Government's "duty tax escalator".
- Duty tax will also rise at the same rate for a further two years, from 2013.
- Valued added tax to remain at 17.5%.
- Consumer and business confidence remains fragile, but economy is moving in the right direction, said Darling at the beginning of his speech.
Sectors: Beer & cider, Spirits, Wine
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There are currently 3 comments on this article
Its all about professional lobbying and the " share of throat" enjoyed by the more established alcohols beverages. Cider was winning market share as it provided better consumer appreciating attributes.
If I read it right, it could be that some ciders will win share. Consumers are multi - alcohol consumers and consumers irrespective of price or tax will migrate to the alcohol that provides the greater value.
Tony Spawton said at 1:42 am, March 26, 2010
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