UK Must Drop Whisky Tax

October 13, 2017 Taxation in UK

Tax on whiskyLONDON – Taxes of spirits need to be dropped, as they are leading to a loss of tax revenues and sales.

The Scotch Whisky Association is calling on the government of the UK to drop the rate of duties applied to the sale of whisky.

The Association is claiming that the recent increase in the rate of the duty has resulted in a decrease in the number of bottles being sold, and, subsequently, a drop in the tax revenues gathered by the government.

Over the first six months of 2017, approximately 36.7 million bottles were sold in the UK, however, over the same period in 2016 a total of 37.7 million were sold.

The result of the decreased sales outweighed the relative increase in tax collected per bottle, with overall revenues from the sale of spirits between April and June this year dropping by 6 percent compared to the previous year.

In previous year when the rate of the duty on spirits was frozen or decreased, the overall tax revenues collected from the sale of spirits rose.

Currently, a bottle of whisky costing GBP 12.77 carries a tax burden of GBP 10, with GBP 8.05 in excise duties, and GBP 2.13 in VAT.