The Society of Independent Brewers (SIBA) says there's a "compelling argument" for equalising duty for beer and cider — but not spirits.
SIBA also urged the Government to confirm its commitment to progressive beer duty (PBD), the tax breaks for smaller brewers, in its submission for the Treasury's review of alcohol tax and pricing.
SIBA urged the government to create a duty structure that encourages consumers to choose lower alcohol drinks like draught beer over higher ABV beverages that "contribute far more readily to a 'binge drinking culture".
In response to Diageo's high-profile call for duty "equivalence", which would mean a freeze on spirits duty only so each unit of alcohol is taxed the same, SIBA said: "There can be no sense at all in allowing spirits to become relatively cheaper as part of a strategy to tackle drink-related problems."
The group said there's a "compelling argument" for equalising duty systems for beer and cider because the smallest brewer, although receiving 50% relief under PBD, is still paying more in duty than a "major brand of Irish cider".
On PBD, the submission says 83% of SIBA members receive the full 50% abatement on all their production, and have a "crucial vested interest in its continuation for their ongoing commercial viability".
However, SIBA would participate in a review of PBD and suggests a similar scheme for smaller cider producers.
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