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Duty freezes on draught beer.

 

Pub
«Brit­ish ale is warm, but the duty on a pint is frozen,» Hunt told MPs. He added that the duty on draught products in pubs would be up to 11p lower than that of super­mar­kets. The 10.1 per cent rise in duty will hit demand for other bever­ages, includ­ing bottled beer, wines and spir­its, that do not bene­fit from tax relief, warned industry groups. A long-awaited shake-up of the duty sys­tem also planned for August, which will tax drinks in rela­tion to their alco­hol con­tent, will mean the wine will be hit by an even big­ger tax increase of about 20 per cent, or 44p a bottle, accord­ing to the Wine and Spirit Trade Asso­ci­ation.

«Duty on non-draught beer will rise, and the meas­ures intro­duced today won’t rebal­ance the cata­strophic impact soar­ing infla­tion and unfair energy con­tracts on both pubs and the brew­er­ies that sup­ply them,» McClar­kin added. «Where we save in one area, we’re get­ting hit in another area,» said Oliver Robin­son, man­aging dir­ector of Robin­sons Brew­ery & Pubs, who said the rise in cor­por­a­tion tax to 25 per cent from April would out­weigh the bene­fits of draught relief. A com­bin­a­tion of the higher alco­hol duty and the higher shake-up means taxes on port and sherry will rise 44 per cent, while the 20 per cent tax increase on wine would be its most significant in nearly 50 years, accord­ing to the WSTA. Mark Kent, chief exec­ut­ive of the Scotch Whisky Asso­ci­ation, said a «his­toric blow» had been dealt to the industry by the lack of a wider alco­hol duty freeze.

www.sba.tax

Comments

  1. I understand they need money and it makes a bit of sense to tax drinks based on their alcohol content but maybe it should have been 20%. Maybe 10% or such. It seems way too much.

    ReplyDelete
    Replies
    1. These measures will affect sales and the whole industry will be done for at least an year and they will get less tax so we'll be where we started. They could have increased it by 5% which would have been much better and then increased it again in 3 by another 5-10%.

      Delete
    2. Even a 7-8% increase now and another one in 1 year would have been better. They need money but this isn’t the best way to get it, I think.

      Delete

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