The UK's Chancellor of the Exchequer, George Osbourne, yesterday cut taxes most alcoholic drinks in his sixth and final Budget before the UK General Election later this year.
Beer duty was cut by 1p a pint and cider by two per cent. There was also a two per cent cut in excise duty on scotch whiskey and other spirits, while wine duty stayed frozen.
The decision has been met with mixed responses, with those working in the UK's brewing industry praising the move, saying that it will be conducive to job-creation and increased sales. The Wine and Spirits Trade Association said it was disappointed the proposed two per-cent cut in the nation's tax on wine did not come to pass.
No changes were announced for tobacco taxes, with tobacco duties set to rise by two per cent above inflation, equivalent to 16p on a packet of 20 cigarettes.
Osbourne told the media yesterday, "Last year I cut beer duty for a second year in a row and the industry estimates it helped to create 16,000 jobs. Today I am cutting beer duty for a third year in a row taking another penny off a pint. I am also cutting cider duty by two per cent to support our producers in the West Country and elsewhere. To back one of the UK’s biggest exports the duty on Scotch whisky and spirits will be cut by two per cent as well. Wine duty will be frozen, more pubs saved, jobs created, families supported, and a penny off a pint for the third year in a row.”
© 2015 European Supermarket Magazine – your source for the latest retail news. Article written by Peter Donnelly.
