SWA continues indictment of alcohol duty

Following the celebration of Burns Night last weekend, the Scotch Whisky Association (SWA) has reaffirmed its indictment of the UK’s alcohol duty escalator.

The SWA has used the Burns Night celebrations to stress its opposition to the UK Government’s alcohol duty escalator

The industry body recently joined the Wine and Spirits Trade Association (WSTA) in the new Call Time on Duty campaign, urging the Chancellor of the Exchequer George Osborne to introduce a freeze on alcohol duty during the 2014 Budget and scrap its automatic tax increase.

Appealing to the recent Burns Night celebrations, where Scotch fans around the world celebrated the life and work of revered Scottish poet Robert Burns on 25 January, the SWA has reiterated its message that almost 80% of the price of a bottle of Scotch is paid in taxation and duty.

Rosemary Gallagher, the SWA’s communications manager, said: “We felt it appropriate to talk about the burden of almost 80% of a bottle of Scotch being made up of tax on the day we celebrate the life and work of Robert Burns.

“As a Scot who was both vocal about his love of whisky but also an excise man, we can only imagine what Burns might have said about the high tax on a dram today.”

Since its introduction in 2008, the duty escalator has increased tax on alcohol by 2% above the rate of inflation.

According to research by the SWA, Scotch whisky volumes have declined by 12% in the UK since the introduction of the escalator, meaning that the UK market has dropped from 102 million bottles of Scotch whisky produced in 2007 to 90 million bottles in 2012.

“It is particularly unfair that the Chancellor continues to penalise Scotch when he removed the escalator from beer, and cut beer duty, in last year’s Budget,” continued Gallagher.

“Drinkers of a dram are now paying 50% more duty than a beer drinker for the same amount of alcohol.”

Call Time on Duty supporters recently met with MPs to put forward their case.