New campaign officially launched to end 'alcohol super tax'
Leading figures from across the drinks industry attended the reception to outline the economic benefits of scrapping the alcohol duty escalator and freezing alcohol duty in the chancellor’s upcoming March budget.
MPs from all parts of the UK and across the party political spectrum heard that since the alcohol duty escalator was introduced in 2008, tax on wine has increased by 50% and for spirits by 44%.
The Call Time On Duty campaign is being supported the Wine and Spirit Trade Association, the Scotch Whisky Association and the TaxPayers’ Alliance.
'Fighting'
Speaking at the reception, Miles Beale, chief executive of the Wine and Spirit Trade Association said: “The alcohol duty escalator is a super tax on a great British industry, including a large number of SMEs across the country, our pubs and restaurants, and many hard-pressed consumers.
"The impact of the escalator means that an important sector of the British economy, of which we should all be proud, is fighting to contribute with one hand tied behind its back.
"Independent research from Ernst & Young shows that by scrapping the escalator, the Chancellor would generate an extra £230 million a year for public finances and create 6000 new jobs.”
'Punishing tax regime'
Priti Patel MP told guests: “British spirits and wines are gaining a strong reputation globally and we should be doing all we can to promote this sector and help it grow further. There are however barriers to growth that need to be looked at and reviewed, including tax.
"For many, the punishing tax regime this sector faces now risks holding it back. We have seen the benefits to the beer industry of beer duty being scrapped and it is now time for the Government to look again at the tax regime on spirits and wines.”
