Dates set for alcohol tax review workshops

The Government has announced a series of consultation dates for the industry to have its say on alcohol taxation.

The Government made a commitment in its Budget to review alcohol taxation and pricing "to tackle problem drinking without unfairly penalising pubs, responsible drinkers or local industry" ahead of a report to be published in the Autumn.

It plans to introduce secondary legislation to increase tax on cheap, strong ciders by changing the definition of cider by introducing a minimum juice content to qualify for the lower duty rate cider benefits from.

Products with low juice content will be taxed at the "more appropriate" made-wine rate from September 2010.

The review of is being jointly led by the Home Office and HM Treasury. The Home Office will lead work on pricing and the Treasury on taxation matters.

But the proposed ban on below cost sales will not be up for discussion as the Government considers the legal implications of whether consulting on such a policy would mean it is participating in price fixing.

A spokesman said that although discussions may touch on the below cost ban, it would be "limited" in scope.

The trade will be keen to lobby for the removal of the controversial 2% above inflation duty escalator set by the Labour Government.

The sessions will consider:

• the strengths of different products and how that has changed over time

• the demographics of who consumes which products and how much they consume

• how price sensitive different types of consumers are;

• how a change in consumption patterns can impact upon health or public order objectives

• how producers might change products (or introduce new products) in the future

Companies and trade groups are scheduled for sessions running from 16 August to 20 August with breweries and beer groups due in on 17 August. The Government will also take soundings from health groups.

"Potential tax measures will have to reflect the legal and practical constraints on the alcohol duty regime," said a spokesman. "Measures will also need to reflect the pressures on the fiscal position and the Government's commitment to reducing the deficit as its highest priority."

There will also be an open session on Monday 23 August from 2-4pm in London. To apply for a place email znggurj.fubeg@uzgernfhel.tfv.tbi.hx​.