Duty Increase on Scottish Whisky Comes into Effect
A recent duty increase on Scottish whisky has created ripples of dissatisfaction in the distillery district. Scotch whisky industry leaders have slammed a 10.1% rise in alcohol duty which came into effect this past August 1. However, politicians were taken by surprise at the industry’s response after the government had delayed the tax which was approved in February this year.
The Scotch Whisky Association (SWA) rebuked the increase as a “hammer blow” for both distillers and consumers. “At a time when inflation has only just started to creep downwards, this tax increase will continue to fuel inflation and make it more difficult for the Scotch whisky industry to invest in growth and job creation in Scotland and across the UK supply chain”
It objected that this was a necessary measure and pointed out that it would make it more difficult for the industry to invest in growth and job creation.
In 2022, the government announced tax increases across the alcohol and beverage industry. These increments in alcohol duties were scheduled for February this year but the chancellor decided to postpone the implementation citing the cost of living crisis.
- Tax augments on wine and spirits yet small reductions on fizz
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- Alcohol duty will be frozen for another six months
A spokesperson from the Treasury described the reforms as essential “common-sense” principles, with tax being attributed based on a drink’s strength.
However, SWA rebuffed the concept saying that the measures represented the largest duty increase on Scotch whisky in 40 years and will add £1.05 to the price of a standard bottle of whisky.
