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SWA urges 2% cut in Budget submission
The Scotch Whisky Association has outlined its case for a 2% spirits duty cut in the UK as part of its Budget submission to the Treasury.
The SWA is calling for a 2% cut in excise duty
In the submission, the SWA protests the “onerous” level of tax on Scotch whisky – equivalent to 77% on the average bottle of Scotch.
The SWA is calling on the Chancellor to ‘Stand up for Scotch’ in the Budget on 8 March to “support the industry, benefit consumers and boost public finances”.
The SWA says that during “a time of change” created by Brexit, the industry needs a supportive domestic tax environment. A move towards excise duty fairness in future Budgets would be a “step forward”.
Such support would also give “confidence” to new Scotch whisky distilleries, it added. Since 2013, 14 have opened and a further eight are set to start production this year.
According to the trade body, a fair tax for whisky is also likely to boost spirits revenue to the Treasury.
Following the 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.
Julie Hesketh-Laird, acting chief executive of the SWA, said: “A 77% tax on a bottle of Scotch whisky is unfair for a number of reasons, so we are calling for a 2% cut in excise in next month’s Budget.
“The onerous level of tax fails to recognise the strategic importance of Scotch whisky to the UK economy and its export performance. And it punishes responsible consumers of Scotch whisky who are paying over the odds in tax compared to people who choose other drinks.
“A cut in excise for Scotch is also likely to be good for the public purse. Positive changes to tax in recent years have seen spirits revenue grow.
“We hope that the Chancellor will consider the compelling evidence of the benefit of a cut in excise duty on spirits and give the Scotch whisky industry and consumers some cheer in the Budget on 8 March.”