Having temporarily scrapped the controversial 10 per cent increase in cider duty, the government is facing calls to discard the proposed beer tax increase. Although the planned 2 per cent increase in beer tax is nowhere near as large as the cider increase, the British Beer and Pub Association (BBPA) is unsurprisingly against the increase.
Chief Executive of the BBPA, Brigid Simmonds, wrote a letter to Chancellor Alistair Darling, and shadow chancellors George Osborne and Vince Cable. In the letter, Simmonds pointed out that since the 2008 Budget, tax on beers has risen by 26 per cent, allegedly costing the industry £761 million. Keen to point out the wider implications of this, Simmonds noted that 4,000 pubs have shut as a result, with 40,000 people subsequently out of a job .
The Budget revealed a fairly draconian set of tax rises from the perspective of the drinks industry. Consumers will also be hard hit, with a 36p increase on the price of a 70cl bottle of spirits, a 10p increase on a 75cl bottle of wine and a 2p increase on every pint of beer. Such has been the opposition to the governments ciders tax, however, they have had to temporarily scrap it.
BBPA Calls for Beer Tax Scrap
Thu, 08 Apr 2010
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