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Whisky sales dip blamed on 'spirit tax' | Whisky sales dip blamed on 'spirit tax' |
(about 5 hours later) | |
Sales of Scotch whisky in the UK have fallen by one million bottles after the UK government increased duty on spirits in the spring budget. | Sales of Scotch whisky in the UK have fallen by one million bottles after the UK government increased duty on spirits in the spring budget. |
Official figures showed 36.7 million bottles were sold in the first six months of 2017, down from 37.7 million in the same period the previous year. | Official figures showed 36.7 million bottles were sold in the first six months of 2017, down from 37.7 million in the same period the previous year. |
The figure equates to a 2.6% drop in demand since the tax was increased by 3.9% in March. | The figure equates to a 2.6% drop in demand since the tax was increased by 3.9% in March. |
The Scotch Whisky Association are calling for the tax to be cut. | The Scotch Whisky Association are calling for the tax to be cut. |
They have launched a Drop the Dram Duty campaign calling on Chancellor Philip Hammond to take action in the budget next month. | They have launched a Drop the Dram Duty campaign calling on Chancellor Philip Hammond to take action in the budget next month. |
Overall tax take | Overall tax take |
The association said than more than £10 of every bottle of Scotch sold for £12.77 comprised of £8.05 in excise duty and £2.13 in VAT. | The association said than more than £10 of every bottle of Scotch sold for £12.77 comprised of £8.05 in excise duty and £2.13 in VAT. |
The HM Revenue and Customs figures showed the overall tax take from spirits had fallen since the March budget increase. | The HM Revenue and Customs figures showed the overall tax take from spirits had fallen since the March budget increase. |
Spirits revenue dropped more than 7% in the first financial quarter of 2017-18, down to £697m, compared to £751m in the same period from April to the end of June the previous year. | Spirits revenue dropped more than 7% in the first financial quarter of 2017-18, down to £697m, compared to £751m in the same period from April to the end of June the previous year. |
This reversed a 7% increase in spirits revenue from the freeze on excise duty in 2016, which boosted the Treasury by £229m. | This reversed a 7% increase in spirits revenue from the freeze on excise duty in 2016, which boosted the Treasury by £229m. |
The 2% cut in spirits tax in 2015 led to a 4% rise in spirits revenue - a £124m increase. | The 2% cut in spirits tax in 2015 led to a 4% rise in spirits revenue - a £124m increase. |
'Lower now' | 'Lower now' |
Karen Betts, Scotch Whisky Association chief executive, said: "Philip Hammond's damaging 3.9% spirits duty hike has hit UK demand for Scotch and seen less money going to the Treasury. | Karen Betts, Scotch Whisky Association chief executive, said: "Philip Hammond's damaging 3.9% spirits duty hike has hit UK demand for Scotch and seen less money going to the Treasury. |
"The chancellor should use his November budget to 'Drop The Dram Duty' and boost a great British success story. | "The chancellor should use his November budget to 'Drop The Dram Duty' and boost a great British success story. |
"Cutting tax would send a strong signal that the government believes in a world-famous UK manufacturing industry which supports 40,000 jobs and plays a key role in Scotland's economy." | "Cutting tax would send a strong signal that the government believes in a world-famous UK manufacturing industry which supports 40,000 jobs and plays a key role in Scotland's economy." |
A Treasury spokeswoman said: "We recognise the importance of the Scotch whisky industry. | A Treasury spokeswoman said: "We recognise the importance of the Scotch whisky industry. |
"In the UK, tax on a bottle of Scotch is 90p lower now than it would have otherwise been, thanks to duty freezes and cuts introduced in the last three years." | "In the UK, tax on a bottle of Scotch is 90p lower now than it would have otherwise been, thanks to duty freezes and cuts introduced in the last three years." |
A Scottish government spokesperson said: "We support the responsible consumption of alcohol, and value the significant contribution that the Scotch whisky sector provides to Scotland's economy. | |
"We believe that taxation should be reviewed to better reflect alcohol content." |
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