The UK Government should freeze duty tax on wine and spirits in its upcoming annual Budget to prevent further job losses in the drinks industry, the Wine & Spirit Trade Association has said.
A four-year duty “tax escalator”, launched in 2008, is set to bring at least a 2% above inflation tax rise on alcoholic drinks in the UK Budget.
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There are fears in industry that the Government will look to plug a hole in public finances by taxing alcohol further.
The Wine & Spirit Trade Association (WSTA) today (16 February) called for the escalator to be halted.
“Enough is enough,” said WSTA chief executive Jeremy Beadles.
Tax has risen by 20% on wine and more than 15% on spirits in the last two years, which the WSTA said has contributed heavily to widespread job losses in the UK drinks sector.
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By GlobalDataFigures contained in the Government’s pre-Budget Report, released in December 2009, show that it expects to make GBP300m (US$470m) more than anticipated from alcohol tax in the fiscal year to the end of March.
Cider may the big loser in the upcoming Budget, after the Government ordered a review of taxation on the drink to reflect its newfound popularity.
However, there is a considerable lack of clarity on tax and fiscal policy in general, with an election set to be held in the UK before June.
