MPs to investigate duty impact on wine and spirits
A group of MPs have launched an inquiry into the impact of last year's bumper duty rises and the potential duty escalator rise on wine and spirits.
The All Party Parliamentary Group on Wine and Spirits has asked for written submissions by 24 February and will hold an oral evidence session on 26 February before reporting in March.
"Figures from HM Revenue and Customs suggest the Treasury is failing to meet its forecast revenue from excise duty on alcohol," a spokesman for the Group said.
"From April to September 2008, HM Revenue & Customs revenue missed Government targets by £137m.
"Major businesses in the wine sector have started cutting jobs in the UK, pointing to the tax regime as a factor in their decision.
"The All Party Parliamentary Group on Wine and Spirits wishes to examine and report on these issues."
The inquiry will be co-chaired by MPs Andrew Dismore MP and Geoffrey Clifton-Brown.
The key questions it wishes to answer are:
• What impact have tax increases had on employment in the wine and spirits industry?
• What impact have tax increases had on Government revenue? Will the tax escalator cause an increase or decrease in revenues?
• What impact have tax increases had on the prospect for future investment by the wine and spirits industry in the UK?
• What impact have tax increases had on consumer behaviour, choice and enjoyment?
Written evidence should be sent to Tim Cork, Office of Geoffrey Clifton-Brown MP, House of Commons, London, SW1A 0AA or by email to pbexg@cneyvnzrag.hx.
