High strength beers to get tax whammy

30 November, 2010

The Government has said it will increase the tax on high-strength beer and cut duty on lower abv beer from late 2011.

It will set out the new rates for beers of more than 7.5% abv and less than 2.8% abv in budget on March 23, 2011.

Treasury minister Justine Greening said in a written statement to parliament: “The government recognises that in some areas taxation can have a role in helping to address the harms associated with problem drinking."

Brigid Simmonds, chief executive of the British Beer & Pub Association, said: “We are pleased that the Government has decided to reduce duty for beer below 2.8% abv. This will provide a welcome incentive for further investment in these beers, and encourage people to choose lower-strength drinks.

“However, when it comes to the increase in duty on higher-strength beers, these account for less than 0.5% of total alcohol sales, and less than 1% of beer sales. Duty rates remain untouched for higher strength drinks such as spirits and wine.

“Overall, we need a duty system that nudges consumers to choose lower-strength, pub-based drinks such as beer."




Bookmark this


Site Search

COMMENT

Lifting the spirits

I were to sum up alcohol sales over Christmas 2017 in one word, it would be “gin”. At Nielsen, we define the Christmas period as the 12 weeks to December 30 and in that time gin sales were £199.4 million, which means they increased by £55.4 million compared with Christmas 2016. There’s no sign the bubble is about to burst either. Growth at Christmas 2016 was £22.4 million, so gin has increased its value growth nearly two-and-a-half times in a year. The spirit added more value to
total a

Click for more »
Upcoming events

Polls

Is blended Scotch overshadowed by single malt in retailers?

  • Yes
  • No
  • Don't know

Facebook

Twitter