Excise duty - alcohol
The measure
The new measures increase the excise duty rates for alcohol. Excise duty is increased by 2% for spirits, beer, wine and made-wine and 10% for cider. The increase will, on average, add:
- 2p to the price of a pint of beer;
- 5p on a litre of still cider;
- 10p on a bottle of wine;
- 12p on a bottle of sparkling wine; and
- 36p on a 70cl bottle of spirits.
It was also announced that the technical definition of cider will be amended
to ensure products that more closely resemble made-wines are taxed
appropriately. No changes will be made to the structure of cider duty but this
will be kept under review.
Who will be affected?
A wide range of businesses and consumers.
When?
The increase will take effect on 29 March 2010.
The increases are significant particularly when taking into account increases in the previous years. These will be especially disappointing for the brewing industry and pubs which have been suffering a strong decline and will see these increases as exacerbating the problems they already face. Cider manufacturers and cider importers will certainly be affected by the significant increase in the excise duty rate.
