The Scotch Whisky Association, has launched a campaign to
press the UK government to re-think the decision to increase duty on Scotch whisky
and other spirits by 10.1% from August.
The 'Keep the Commitment' campaign, will ask the government
to uphold the pledge made to the industry in 2019 to ensure the tax system is
supporting Scottish whisky. Since that promise was made, the tax burden on
Scotch whisky has increased from 70% to 75% of the average priced bottle, and
crucially the tax-gap between spirits and other alcohol categories has widened.
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| Scotch Whisky Association launches Keep the Commitment campaign |
The decision to further extend tax breaks for draught products in pubs, bars and restaurants excluded 99% of distillers and increased the tax differential between Scotch Whisky with beer and cider. Per unit of alcohol, the tax gap to beer in the on-trade – already 51% - will rise to 66%, and for cider it will rise from 227% to 260%.
Commenting as the campaign, Mark Kent, Chief Executive of the Scotch Whisky Association, said: “Over the past month, we have pressed the UK government to rethink the damaging double-digit duty rise on Scotch Whisky. It is hugely disappointing that the industry seems to be taken for granted, and that previous pledges that have been made to the industry will not be honoured. That is why we have launched the ‘Keep the Commitment’ campaign."
Mark, went onto say: "We want the UK
government to understand what choosing to impose a double-digit duty hike will
do to the industry, hospitality businesses and consumers. And we want MPs to
support Scotch Whisky, including in the vote next week on the tax increased
proposed by the Chancellor. By voting against the tax increase, MPs can send a
clear message to the Chancellor that he should meet the industry, reconsider
the tax rise, and keep the commitment to support Scotch.”
In order to keep the commitment to the industry, the Scotch Whisky Association is asking the UK government to allow distillers immediate access to the Energy Bill Relief Scheme, with spirits currently the only alcohol category excluded from the scheme, and a reversal of the 10.1% tax hike due to come into force on 1st August.
Posted by Steve Rush