SWA meets with Treasury over tax ‘burden’

Representatives from Scotch Whisky Association (SWA) have met with the UK Treasury to outline their case for a 2% reduction in spirits duty ahead of the Budget Statement next month.

SWA chief executive David Frost has upped government lobbying efforts as the Budget Statement approaches

Trade body the SWA held a meeting with Treasury Exchequer secretary Damian Hinds MP yesterday (2 February) to discuss “benefits” a further reduction to spirits tax would create for both industry and the government.

Last month, the SWA launched its ‘Fair Tax for Whisky: Stand up for Scotch’ campaign, which is asks chancellor George Osborne to repeat his actions in last year’s Budget and reduce the tax and VAT currently paid on a bottle of Scotch from 76% to 74%.

Last year’s tax reduction was the first cut in spirits duty in almost 20 years and only the fourth time tax on whisky has been lowered in the last century.

The SWA claims the duty cut actually helped boost tax receipts on spirits by £96 million between April and December, compared to the same period in 2014.

In its Budget submission to the Treasury, the SWA said the current level of excise imposed on Scotch whisky is “unfair”, since Scotch drinkers pay 51% more duty than beer drinkers in the UK and 27% more than wine drinkers.

“We had a constructive discussion with the Exchequer Secretary to the Treasury, highlighting the significant increase in government revenues this year – nearly £100m – as a result of the spirits duty cut in March, as well as the boost that decision gave to distillers, large and small,” said David Frost, chief executive of the SWA.

“We explained how a reduction in excise in next month’s Budget would support public finances, promote investment and jobs across the UK and continue the progress made towards fairer tax for one of the UK’s most iconic and successful industries.

“In short, when unnecessarily heavy tax is cut, revenues actually go up, and consumer and industry confidence is boosted.”

A poll conducted on behalf of the SWA found that three quarters of the British public believe duty on Scotch whisky should be cut.