Whisky Supports the UK Economy, But Needs Tax Break
January 26, 2017 Taxation in UK
New data in a report issued by the UK Department for the Environment, Food and Rural Affairs has shown that the national whisky industry provides a disproportionate benefit to the country, compared to the taxation levels that it faces.
It was shown that the level of exports of whisky from the UK is approximately GBP 4 billion each year, however, the net level of imports required by the industry is approximately GBP 200 million, resulting in a net trade balance of GBP 3.7 billion.
The level of the trade balance in the whisky industry is one of the highest is one of the highest in the country.
It was calculated that the national trade deficit would rise by as much as 3 percent, without the positive influence of whisky exports.
Commenting on the taxation levels faced by the whisky industry, the acting chief executive of the Scotch Whisky Association (SWA) Julie Hesketh-Laird called on the government to support the industry by enacting a 2 percent cut to the excise duties on whisky.
Currently, a bottle of whisky in the UK carries a tax burden of 77 percent at the point of sale, a rate that the SWA claims is overly burdensome on consumers and the industry as a whole.