UK Scotch tax ‘1.5 times higher’ than EU average

Figures from the Scotch Whisky Association (SWA) suggest that UK Scotch drinkers pay an average of 1.5 times more tax per bottle than their European counterparts.

Scotch drinkers in the UK are paying more that double that of their European counterparts, says SWA

SWA research found that despite consuming 17.5% of all Scotch whisky in the European Union, UK drinkers pay 38% of the region’s total tax take.

Despite domestic production, the UK government taxes Scotch at one of the highest rates in Europe, says the trade association. 76% of the price of an average bottle is made up VAT and excise duty. This compares to a 45% tax rate in Germany, 44% in Italy, and 41% in Spain. The average tax rate levied on Scotch across the EU is 49%.

According to SWA figures, UK spirits drinkers contribute £8.6 million paid in tax to HMRC each day.

“The Chancellor needs to Stand Up For Scotch again in next week’s Budget and cut excise duty on Scotch Whisky by 2%,” said David Frost, Scotch Whisky Association chief executive.

“Another cut will help deliver growth in this iconic British industry, while providing a fairer level of tax for Scotch whisky drinkers in the UK.”

SWA is currently lobbying the UK government for a cut in spirits excise ahead of the 2016 Budget, due to be announced on 16 March.