Whisky Duty Rises by 2%
The Scotch Whisky Association expressed its disappointment following the Chancellor’s decision to increase the duty on spirit drinks by 2%. The organisation claims that "distillers face challenging market conditions at home and abroad." and further that the rise is ‘a blow to the industry that comes at the worst possible time’. The Budget will add 14p to the price of a bottle of Scotch Whisky.
Gavin Hewitt, the SWA Chief Executive, said: “A duty increase during a recession is a real blow.... At a time when the Chancellor is looking for additional revenue, we believe that an increase in excise duty will be counterproductive.
WHISKY DUTY RISE "DISAPPOINTING" - MATHER
Jim Mather, Argyll & Bute MSP has deplored the 2% rise in duty on whisky announced by Chancellor Alastair Darling in his crisis budget on Wednesday. Argyll & Bute is a significant producer of high quality malt
whisky for sale under various categories and such an increase will do little to stimulate sales.
Mather said, "I am saddened to see that the Chancellor yet again reverts to type and treats our whisky industry as a cash cow. Argyll & Bute is the location of several distilleries... Most of this whisky is sold as single malts although there is steady demand for blending as well. .... Whisky production is one of our key and prestige industries and it is disappointing to see that once again the squeeze is imposed from Westminster."
However Mark Reynier, the MD of of independently minded Bruichladdich Distillery, who are not members of the Scotch Whisky Association told the Ileach: "No duty increase is a good one (it never seems to go down) but this one was clearly forecasted - as is next year's. It applies to all spirits and not just whisky, and will in any case will be offset by the reduction in VAT in the short term. Excise Duty revenues from the whisky industry are relatively static - around £615 million - because despite the healthy growth in single malt whisky sales in the UK, they are offset by the steady fall in the larger blended volumes since 1995 - so the industry, bearing in mind that around 90% is exported, is less cash cow for the Government that some claim it to be, but more simple touch. Of course a cut in duty rates, as elsewhere has shown, would reduce organised cross-border smuggling and increase UK revenues.
