A team from the Scotch Whisky Association, met the Financial Secretary to HM Treasury, Jane Ellison MP, to discuss the pressures on the industry caused by the 77% tax burden on the price of an average bottle of Scotch whisky.
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| SWA makes case for 2% excise cut in March budget |
The Scotch Whisky Association, has issued a call to action to 'Stand up for Scotch'. As well as being fair on the industry and consumers, government figures show that a cut in excise boosts the public purse.
Following the 2% cut in spirits duty in March 2015, spirits revenue in 2015/16 increased by £123 million to £3.15 billion. Spirits revenue is now £155m a year higher than when the alcohol duty escalator was scrapped in 2014.
The Scotch Whisky Association says that during a time of change created by Brexit, the industry needs a supportive domestic tax environment, and as the largest net contributor to the UK's balance of trade in goods, Scotch whisky is vital to the UK economy.
Commenting on the news, David Williamson, Public Affairs Director at the Scotch Whisky Association, said: "We had a constructive discussion with the Financial Secretary, highlighting that a cut in excise is likely to increase spirits revenue to the government, as well as boost distillers, large and small. We hope the Government will listen to the evidence by cutting excise on spirits by 2% to grow the public finances and reduce the onerous 77% tax burden on Scotch.”
He went on to say: "A fair and competitive domestic tax environment is also an important part of the Brexit jigsaw, ensuring a strategically important industry like Scotch Whisky is well placed to invest and grow in the future."
Scotch whisky consumers, pay 51% more duty than beer drinkers, 19% more than wine drinkers and 327% more than cider consumer per unit of alcohol. The Scotch Whisky Association, believes this is unfair on responsible drinkers of Scotch whisky.
Posted by Steve Rush