Scotch Whisky Tax is Unfair

December 23, 2014 Taxation in UK

LONDON – The high tax burden placed on the sale of whisky is placing a financial burden on taxpayers in the UK and the domestic scotch industry, and is considered to be unfair by most taxpayers.

On December 21st the Scotch Whisky Association issued a new statement with the results of recent research showing that a large proportion of taxpayers in the UK are not aware of the high tax burden placed on the purchase of scotch whisky.

According to the experts of the Scotch Whisky Association, as much as 89 percent of people in Scotland believe that the amount of taxes imposed on the sale of whisky in the UK is unfair, and should be reduced, while at the same time the Associations also concluded that two thirds of all taxpayers are unaware of the tax burden on whisky.

Currently the average bottle of scotch whisky in the UK retails for approximately GBP 12.90, with GBP 10.06 of the price being made up entirely of taxation.

In its report the Scotch Whisky Association noted that the sale of whisky is subject to a level of tax that is 51 percent higher than for beer, and 29 percent for wine.

It was noted that the high tax burden on scotch whisky in the UK places a great financial strain on taxpayers, especially around Christmas time, as one third of people buy whisky for themselves or as presents.

The high tax burden also places a strain on the domestic scotch industry, which employs 40 000 individuals throughout the UK, but has seen a decline in activity in recent years, as taxes on spirits in the UK have risen by as much as 25 percent under the current government administration.