WSTA urges PM to review UK’s ‘unfair’ alcohol tax

The Wine and Spirit Trade Association (WSTA) is urging British Prime Minister David Cameron to consider the “unfairness” of the UK’s high levels of alcohol tax in comparison to the rest of the EU.

British Prime Minister Dvid Cameron is being urged to highlight the UK’s unfair alcohol tax rates

UK consumers fork out nearly £9.9 billion (€12.5bn) in alcohol duty every year, accounting for 38% of all alcohol duty paid by consumers across EU member states.

This equates to more alcohol duty than Germany (10%), France (9%), Poland (8%), Italy (3%) and Spain (3%) combined.

Per capita, Britain pays £153 (€194) in alcohol duty, making it the third highest in the EU and 2.8 times more than the average €70, despite the UK’s per capita consumption being less than the European average.

Furthermore, a quarter of all spirits duties in the EU are paid by the UK.

“It is clear that the average UK consumer is getting a very rough deal, compared with consumers in the rest of the EU,” said Miles Beale, CEO of the WSTA.

“Even after the government’s welcome abolition of the alcohol duty escalator in the 2014 Budget, the current rate of duty being paid by UK consumers remains extremely high.

“Let’s hope that as the Prime Minister toasts his European counterparts he will pause to consider the unfairness of the UK’s high levels of duty and the positive impact that a reduction in duty would have on jobs and growth.”

PM Cameron attended a meeting of the EU Council in Brussels yesterday.