Authorities in Denmark have cut the tax on Scotch whisky by 45%.
High levels of cross-border shopping, and changes to the amount of spirits a consumer can import into Denmark, have led to the excise duty on Scotch being slashed by 35 Kroner (£3.25) a bottle.
Hugh Morison, chief executive of The Scotch Whisky Association, said: “Denmark has recognised that high taxes only lead to a disorderly spirits market, with consumers crossing the border to Germany looking for a fairer deal resulting in the government losing valuable tax revenue.
“With Norway reducing its spirits tax in each of the last two years and the Finnish Parliament considering a proposal to cut the duty on Scotch by 44% next year, today’s tax cut is part of a welcome trend across Scandinavia towards the fairer taxation of spirit drinks.”
Morison added: “In this year’s UK Budget, the government also committed itself to ensuring a fair system of alcohol taxation. With Scotch still taxed 1.4 times more than wine in its home market, we welcome this policy and believe developments in Denmark should encourage the Chancellor to take further steps towards a modern tax system for alcoholic beverages in the UK.”
Exports of Scotch Whisky to Denmark in 2002 were worth £9.3m.
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