SWA outlines ‘pressures of tax burden’ to UK Treasury

Representatives from the Scotch Whisky Association (SWA) have met with the UK Treasury to make their case for a 2% cut in spirits duty ahead of the Budget Statement in March.

The SWA is calling for a 2% cut in spirits duty

The SWA met financial secretary, Jane Ellison MP, to discuss the “pressures” on the industry caused by the 77% tax on the price of an average bottle of Scotch and urge the Treasury to implement a 2% spirits duty cut in the forthcoming budget.

David Williamson, public affairs director at the Scotch Whisky Association, said: “We had a constructive discussion with the financial secretary, highlighting that a cut in excise is likely to increase spirits revenue to the government, as well as boost distillers, large and small. We hope the government will listen to the evidence by cutting excise on spirits by 2% to grow the public finances and reduce the onerous 77% tax burden on Scotch.

“A fair and competitive domestic tax environment is also an important part of the Brexit jigsaw, ensuring a strategically important industry like Scotch Whisky is well placed to invest and grow in the future.”

As well as being fair on the industry and consumers, the SWA says, government figures show that a cut in excise “boosts the public purse”.

After a 2% cut in spirits duty in March 2015, spirits revenue in 2015/16 increased by £123 million to £3.15 billion. Spirits revenue is now £155m a year higher than when the spirits duty escalator was scrapped in 2014.

The trade body added that a 2% cut in spirits duty would be “a step in the right direction” in creating the “supportive domestic tax environment” the county needs during a time of change created by last year’s Brexit vote.