Trade Lobbies for Tax Cut Rather than Tax Rise this Wednesday
Posted on Thu 24th Mar 2016 at 12:20
Did you know that the French pay just 2p of tax on every bottle of wine, and the Italians pay nothing at all? By contrast, Britons pay £2.05 on every bottle and, shockingly, we pay around two thirds of the alcohol duty levied across the entire continent.
The ENTIRE continent. It’s not surprise, therefore, that Britain’s winemakers are lobbying George Osborne to give them a break. The CEO of the Chapel Down winery Frazer Thompson, for example, recently told the Guardian that high wine duty "does stifle innovation and put up barriers. Wine has been seen as something that is easy to tax because it was for wealthy people. But wine is for everybody now”. Here Thompson hits the nail on the head, and proves that it’s not just a problem for English winemakers alone. Wine producers from every country who want to introduce the style and beauty of their wine to the United Kingdom are stifled by the duty barrier – why should consumers spend extra when they have cheap wine alternatives just a train ride away? Tax cuts in the previous budgets have demonstrated how a small drop in duty can stimulate growth in wine sales, stimulate the economy and create more jobs – not to mention allow hardworking British consumers to explore the wonderful world of wine. Reversing the cuts in duty will stifle growth, cut jobs and disadvantage British consumers. The trade should be commended for their hard pre-budget lobbying and we’re keeping our fingers crossed that it pays off this Wednesday!