Scotch Whisky Needs Further Tax Cuts
January 28, 2016 Taxation in UK
EDINBURGH – Cutting excise duties on Scotch Whisky in the UK has been proven to raise tax collections, and now the industry is calling for further tax reductions.
On January 27th the UK Scotch Whisky Association issued a press release praising last year’s cut to the excise duties levied on the sale of whisky in the UK, but added that even further reductions would lead to increased tax revenues and would serve as a boost to the industry.
Last year the government of the UK enacted a 2 percent cut to the rate of excise duties levied on the sale of scotch whisky, lowering the rate from an average of 78 percent to a new average of 76 percent.
In the new press release the Scotch Whisky Association added that over the year since the last tax cut, the tax revenues collected by the government from the sale of scotch rose by GBP 96 million, to a total annual level of GBP 2 497 million.
It was suggested that if a further excise tax cut of 2 percent was instead in the upcoming March budget, the government could see the revenues rise further.
It was also pointed out that the Scotch industry provides employment for 40 000 people, and that such a large part of the UK economy and culture should be supported.
Last year’s cut to the rate of excise duty on whisky was the first cut in 20 years, and only the fourth cut in the last century.
Photo by: Wade Simmons