Scotch whisky bosses ask Rishi Sunak to cut alcohol taxes
Tuesday, January 19, 2021
Figures based on modelling by the Centre for Economics and Business Research show that, by cutting the cost of drinks by 5%, the Treasury could raise an extra £748m in taxes and sales tax over three years.
The Scottish Whisky Association says a cut in the 'significant tax burden' on Scotch whisky, where three of the $4 spent for the average bottle of Scotch whiskey goes straight to the Treasury, would actually increase state revenues.
Industry leaders also stressed the need to support the Chancellor today with the US introducing tariffs on Scotch whisky.
The industry, the chancellor said, emphasised the need to keep helping the industry facing increasing losses.
Karen Betts, the chief executive of the Scotch Whisky Association, said: "This was an extremely challenging year for Scotch whisky industry, with the combined effects of Covid-19 and US duties.
The SWA's proposed 5 per cent tariff cut will see Scotch whisky taxed per unit in the same way as Scottish wine from 11 '.
According to the Scotch Whisky Association, exports to the US plummeted by more than 30% last year, impacting brands like Bell's.