The largest overhaul of alcohol duty in 140 years sees drinks taxed by strength
rather than category from 1 August.
It also sees the introduction of Small Producer Relief, which aims to help small
businesses and start-ups create new drinks, innovate and grow.
There will be lower taxes on lower alcohol products – those below 3.5% alcohol by
volume (ABV) in strength.
The number of main duty rates for alcohol is being reduced from 15 to six, to
make it easier for businesses to grow and operate.
According to the government, the duty paid on drinks on tap in pubs will be up to
11p lower than at the supermarket.
However, the Wine and Spirit Trade Association (WSTA) warned that for spirits
there will be at least a £1 increase on a bottle of gin or vodka and a bottle of
wine will go up by £1 when VAT is included.
Miles Beale, Chief Executive of the WSTA, said:
'Ultimately, the government's new duty regime discriminates against premium
spirits and wine more than other products.
'Wine from hotter countries – like new trade deal partner Australia – will be
penalised most of all, because the grapes grown in hotter climates naturally
produce higher alcohol wines.
'Nor can the alcohol in full strength spirits be reduced for products such as
gin, vodka and whisky where a minimum strength prescribed by law.'
Internet link: HM Treasury press release WSTA website