The Scotch Whisky Association (SWA) has launched a campaign, urging the UK government to reconsider its decision in the budget to raise the duty on Scotch Whisky and other spirits by 10.1% starting in August.
The #KeepTheCommitment campaign calls on the government to stand by the assurance given to the industry in 2019 to “ensure the tax system is supporting Scottish whisky.” Since the promise, the tax burden on Scotch Whisky has grown from 70% to 75% for an average-priced bottle, and notably, the tax gap between spirits and other alcohol categories has expanded.
The decision to further extend tax breaks for draught products in pubs, bars, and restaurants left out 99% of distillers, increasing the tax disparity between Scotch Whisky, beer, and cider. The tax gap for beer in the on-trade will jump from 51% to 66%, while for cider, it will increase from 227% to 260%.
To fulfil its commitment to the industry, the SWA requests the UK government to grant distillers immediate access to the Energy Bill Relief Scheme, with spirits being the only alcohol category currently excluded from the program, and to reverse the 10.1% tax increase scheduled to take effect on August 1st.
SWA Chief Executive Mark Kent commented on the campaign’s launch, exactly one month after the UK budget announcement, “We have spent the past month urging the UK government to reconsider the detrimental double-digit duty increase on Scotch Whisky.
“It is extremely disheartening to see the industry seemingly overlooked, and prior commitments made to the sector not being fulfilled.
“This is the driving force behind the ‘Keep the Commitment’ campaign. We want the UK government to recognise the impact a double-digit duty hike will have on the industry, hospitality businesses, and consumers. Moreover, we want MPs to support Scotch Whisky in next week’s vote on the tax increase proposed by the Chancellor.
“By voting against the tax hike, MPs can convey a strong message to the Chancellor to engage with the industry, reevaluate the tax increase, and honour the commitment to support Scotch.”