Trade bodies call for 2% duty cut on wine and spirits

Will he even hear their call? The Wine and Spirit Trade Association (WSTA) and the Scotch Whisky Association (SWA) are imploring the UK’s Chancellor George Osborne to cut the duty on wine and spirits by 2 percent in his March budget. The “Drop the Duty!” campaign, launched on 15 December 2014, argues that a cut would give a big billion boost to public finances in 2015.

Research by Ernst & Young, commissioned by the two trade organisations, is being used to back their “Drop the Duty!” campaign.

Supported by the TaxPayers’ Alliance, the campaign will seek to highlight how UK consumers currently pay nearly 80 percent in tax on an average priced bottle of spirits and almost 60 percent on an average priced bottle of wine, it was reported.

The Ernst & Young report claims that a 2 percent duty cut would increase the wine and spirits industry’s contribution to the economic activity by GBP 3.9 billion, from GBP 46.6 billion to GBP 50.4 billion. Additionally, the industry’s direct contribution to the UK’s GDP would increase by GBP 0.9 billion, from GBP 11.8 billion to GBP 12.7 billion.

The trade bodies are hoping to score a further victory from the government, after last year’s successful campaign to persuade Mr Osborne to abolish the alcohol duty escalator.