Cider industry welcomes new tax definition
Cidermakers have welcomed new rules which mean any cider or perry with less than 35 per cent fruit juice content will face a higher rate of tax.
A new parliamentary order agreed last week means products falling below the 35 per cent minimum will face the higher "made-wine" duty rate.
However, it is understood the majority of high profile mainstream cider brands will not fall foul of the new regulations.
Made-wines are drinks that are not defined as a spirit, wine, beer or cider, but made from the mixing of wine with another substance.
Ready-to-drink products, or "alcopops", less than 5.5 per cent ABV are also included in the made-wine category.
Henry Chevallier-Guild, chairman of the National Association of Cider Makers, said he was pleased as the definition had "tidied things up" for the industry.
He added: "We have all worked really hard to produce the definition. This not only ensures that mainstream manufacturers can continue to invest in orcharding and processing equipment safe in the knowledge they will not be unfairly penalised; vitally, it protects the smaller craft end of the market as well."
He argued the definition was an "important advance" but admitted the number of products affected was unknown.
Cider duty is currently around half the rate of beer duty - and the last government announced it was correcting this anomaly by hiking cider duty by 10 per cent.
However, prior to taking power the Tories and Lib Dems voted against this and the measure was scrapped.
Chevallier Guild said cider was still taxed at a lower rate because of a "long-standing and clear recognition of the long-term commitment to planting orchards and the important role cider makers hold within rural communities".
Brewers had welcomed the idea of a cider duty hike to bring it more in line with beer - and were disappointed the change was not made.
But Chevallier Guild said it was "frustrating" to hear the argument that raising cider tax would address the problems caused by binge-drinking and help brewers. "It's a nonsense. We want a proper debate about it," he said.
In a parliamentary debate on the order, economic secretary to the Treasury, Justine Greening, said: "I think that it strikes the right balance between protecting our industry and changing the rates of duty on the so-called ciders that we know are particularly associated with problem drinking."
She added: "Our broad concern is to ensure that we have an alcohol duty regime that starts to go further in addressing the problems associated with problem drinking."
