BUDGET PRESS RELEASE
Press Release 12 March 2008
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A BUDGET THAT WILL NOT DELIVER
The Chancellor increased excise rates on spirits by 10% today. The Gin and Vodka industry fully recognises its role in promoting responsible drinking. But increasing tax will not target the abuser.
"The Chancellor cannot have it both ways," said Edwin Atkinson, Director General of the GVA, which represents by far the largest sector of the UK spirits trade. "Either he wants more revenue or he wants to reduce consumption. For spirits, he cannot have both. And given thehuge increases in production costs, this increase is even more concerning."
This is because today'stax rate is already so high, it is past the point of diminishing returns. We estimate that this increase in tax rate will reduce revenues by over £40M a year, not increase them.
The average tax on a bottle of spirits sold in the supermarkets was already 69% before this Budget with cheaper vodkas over 84% tax.
That the Government should commit itself and future Governments to an above inflation rate increase for alcohol for the next four years is hitting all drinkers for the sins of a minority. It abandons the previous Government policy of creating fairness in taxation between competing alcohol drinks.
For further information contact Edwin Atkinson or Graham Bateman at
THE GIN AND VODKA ASSOCIATION OF GREAT BRITAIN
Cross Keys House, Queen Street, Salisbury, Wiltshire SP1 1EY
Telephone: 01722 415892 Fax: 01722 415840 Mobile: 07867 513409