Blog: Olly WehringVAT increase garners industry reactions

Olly Wehring | 11 November 2009

With VAT due to be restored to its standard 17.5% rate by the end of the year, many in the industry have voiced their opinions on excise duty.

The WSTA yesterday (10 November) called on the government to cut duty once the VAT rise is implemented, claiming the rise was happening at an “inconvenient” and the “worst possible” time of the year.

The association questioned whether lowering the VAT really had any impact on stimulating consumer demand.

The BBPA echoed those sentiments, asking to be treated on a “level footing” with other sectors of the economy.

While the BRC has said it will be up to individual retailers to decide whether to pass on the increase, Tesco has confirmed to just-drinks that will indeed be the case.

And so the potential effects on the drinks industry once the VAT increases are implemented are yet to be witnessed, but with Christmas on the horizon, a last minute spending surge by consumers may be on the cards.

Click here for more insight into the industry's thoughts on the VAT increase.


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