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US trade group hails suggestion of spirits tax cut
US trade body the Distilled Spirits Council has applauded the inclusion of a two-year spirits tax cut in the Senate Finance Committee Amendment.
The Distilled Spirits Council is fighting for a cut to spirits tax in the US
The amendment is a “modest, two-year version” of the Craft Beverage Modernization and Tax Reform Act, which has not yet been signed into law.
The Distilled Spirits Council supports the act, saying it “creates a more fair and equitable tax structure for brewers, winemakers, distillers and importers of all beverage alcohol”.
The current federal excise tax (FET) levied on distilled spirits is US$13.50 per proof gallon. A total of 54% of the price of a typical bottle of distilled spirits is consumed by taxes and fees.
“We commend the Senate Finance Committee for recognising the excessive tax burden faced by the more than 1,200 operating distilleries nationwide, as well as the important role distilleries of all sizes play in generating jobs, supporting agriculture and boosting tourism,” said Mark Gorman, senior vice president, government relations, at the Distilled Spirits Council.
“With more than half the cost of a typical bottle of spirits resulting from taxes and fees, a reduction in the federal excise tax will stimulate further investment and job creation in communities across the country.”
Gorman also claimed that the bill has more than 300 co-sponsors in the House and 54 in the Senate.
“We will work with the other Senate co-sponsors to ensure that this amendment is included in the final bill that passes the Senate,” he added.