WSTA: duty plus VAT is right definition of below cost

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WSTA: duty plus VAT is right definition of below cost

08/09/2010

11:49:12

The Wine & Spirit Trade Association has told the Government the only sensible definition of below cost is duty plus VAT.
The WSTA used the licensing consultation to further press its claims that that any ban on below cost sales of alcohol in supermarkets must be defined as a combination of the two taxes.
The call is widely unpopular in the pub trade as it does not take in to consideration the cost of production or marketing and is therefore unlikely to make a significant impact on the price of alcohol in supermarkets.
The organisation also stressed any below cost ban must be set on a national basis.
"The WSTA supports a ban on selling alcohol below the level of 'duty plus VAT' on the basis that these are both consumer taxes and therefore the cost should be passed on to the consumer," it said.
"The Association is working with Government on a transparent and fair definition of cost but believes this aspect of the licensing consultation must be applied nationally if it is to meet the

Read full article: WSTA: duty plus VAT is right definition of below cost

18 replies - Last reply by J Mark Dodds, 08/09/2010 21:05:12

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Robert Feal-martinez

08/09/2010

17:23:48

WSTA: duty plus VAT is right definition of below cost

If you have an organisation made up of various groups then if they speak 'collectively' then they should agree behind the public facade.

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08/09/2010

17:37:19

WSTA: duty plus VAT is right definition of below cost

Robert...so tell me where the IPC aren't in agreement please. It's a simple question and I am still not sure what you are alluding to in your accusations.

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08/09/2010

18:43:25

WSTA: duty plus VAT is right definition of below cost

Surely no one can seriously define cost as duty plus tax. This means that effectively the brewer would be selling an item for less than it cost him so there must be an element of the producers cost included.All a supermarket would have to do is sell it for tax+1/2p+vat to comply.

Ken Nason

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08/09/2010

18:49:00

WSTA: duty plus VAT is right definition of below cost

Ken I don't even think they need the halfpence! It's below cost (their definition!) not equal or below. You are spot on the money, no one can really take this seriously, but I bet that halfpenny of yours to a pound of mine that the politicians take the option they offer because of the supermarket lobby.

It's a sham as already pointed out.

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Gerry Price Price

08/09/2010

20:50:36

WSTA: duty plus VAT is right definition of below cost

Info, you are so right. Never has there been a more divided drinks retailing industry as now. That is probably why the industry is in such a state and don't the major players just love it? It is difficult to know who to trust when talking about issues that one has and it is impossible for the government, any government, to get to grips with what is going on, what needs to be changed and what left alone when it hears just a cacophany of sound from many different directions all crooning on about their own particular problems.

As for Duty plus VAT, what planet is this guy on and why are the WSET taking this stance? I do not understand it.

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08/09/2010

20:58:14

WSTA: duty plus VAT is right definition of below cost

Vince, it's not WSET which is an educational organisation but WSTA. Just to clear up, apologies for pedantry.

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08/09/2010

21:02:51

WSTA: duty plus VAT is right definition of below cost

Oops answered a question I had already answered, must be late!

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08/09/2010

21:05:12

WSTA: duty plus VAT is right definition of below cost

Never too late Richard. Never too late. Not until the Fat Lady sings anyhow...

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