THE Scottish Whisky Association (SWA) have called for a 2% cut on excise duty ahead of next month’s Budget.
Representatives from the SWA met with Treasury Exchequer Secretary Damian Hinds MP earlier this month to put forward their case. In their submission they set out the imbalance they feel the current system has on the Industry.
Currently Scotch drinkers pay 51% more duty than beer drinkers in the UK, and 27% more than the wine drinkers. With the SWA asking the question ‘Alcohol is alcohol, a unit is a unit, so why should Scotch Whisky drinkers be forced to pay more?’
The 2015 Budget saw Chancellor George Osborne apply a 2% cut in excise duty, and now the SWA are seeking a further 2% cut; citing that despite the previous cut, the tax on an average priced bottle of Whisky is an ‘onerous’ 76%.
On a bottle of Scotch Whisky costing £13, a breakdown of Tax and returns to the industry are as follows:
- Excise Duty – £7.74
- VAT – £2.17
- Total Tax – £9.91 (76%)
- Scotch Whisky – £3.09 (24%)
The SWA claim that this disparity is ‘unfair to responsible consumers of Scotch Whisky who drink in moderation’
SWA chief executive, David Frost, said: “It may surprise some people that Scotch whisky is now the number one contributor to the UK’s balance of trade in goods and that the trade deficit would be 11% higher without whisky exports.
Given the scale and impact of the Scotch whisky industry, we believe the Government should re-double its efforts to support distillers.”
A recent poll, carried out by Censuswide on behalf of the SWA, has shown that three quarters of the British public believe duty on Scotch should be cut.
If the Chancellor listens to the SWA and applies the 2% cut it will be only the 5th time in the last century that duty on Whisky has been cut.
David Gildea
