Calls for fairer taxes for independent distillers

The Craft Gin Club – a supporter of independent distilleries – is urging the government to reduce UK excise duties after finding that 61% of the price of a bottle of gin is composed of excise and VAT.

The Craft Gin Club is calling for lower alcohol taxes to “level the playing field” for independent distilleries

The survey, conducted by the Craft Gin Club, looked at 111 gins from both independent and mass produced brands and calculated that 61.1% of the average bottle of gin is comprised of duty and VAT.

As such, the group has suggested a progressive excise duty based on production volume to offset the higher production costs of smaller, independent distillers.

“The Craft Gin Club is campaigning for a means to level the playing field of a drinks industry dominated by and slanted in favour of large, multinational corporations,” said John Burke, co-founder of the Craft Gin Club who led the research.

“A progressive duty based on production volume will help small distillers to grow their sales in the face of huge competitors and, as those small distillers grow, automatically increase the amount of duty they pay.

“We would like to be clear though, this is not a proposal meant to attack large drinks companies. Small volume distillers within a large drinks company’s portfolio would be subject to the same progressive tax.”

Burke’s findings follow in the wake of the SWA’s call for a 2% reduction on spirits taxes from what it described as “draconian” duties implemented by HMRC resulting in a 12% decline in Scotch whisky.

He added a tax reduction would also allow smaller distilleries a “fair chance” to grow organically, and with that excise duties would then rise accordingly.

“A progressive duty is good the for the gin and spirits industry as a whole because it boosts competition as well as product diversity,” he added.

“A lower price due to a reduced excise duty means that small distillers maintain the same income per bottle sold, thus increasing their overall income thanks to the sales volume increase.”