Scotch whisky-lovers in Britain are facing a steep increase in tax, double that of France, on their favorite tipple. The rise in excise duty means that those enjoying a dram in an Edinburgh pub now pay higher rates than they would in a Paris bar. In fact, drinkers in the US pay just a fifth of the rate in the UK, while in Germany they pay a third. The increase in tax, implemented by Chancellor Jeremy Hunt, has resulted in the duty on whisky being £31.64 a litre of alcohol, compared to £15.97 in France and £12.61 as the G7 average.
Tax hike threatens whisky industry
With nearly three quarters of the cost of an everyday bottle of Scotch going straight to the Treasury in tax, distillers are warning that any further increases will be a major blow to the £5.5 billion whisky industry. The Scotch Whisky Association is calling on Mr. Hunt to rule out any additional tax hikes. The association’s chief executive, Mark Kent, expressed concern over the potential impact of another increase in excise duty so soon after the largest in 40 years was implemented by the Chancellor.
Treasury defends tax rates
In response to the concerns raised by the industry, a Treasury spokesman pointed out that Scotch whisky has received nine cuts or freezes in tax rates at the last ten Budgets. Furthermore, he assured that the government is committed to protecting the interests of the Scotch whisky industry in trading agreements, ensuring that they face lower tariffs for export.
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