meeson
|
BBPA: Whisky tax changes should apply to whole sectorBBPA: Whisky tax changes should apply to whole sector
Trade group argues duty change does not offset VAT cut
The British Beer & Pub Association (BBPA) has met with Treasury officials this morning to argue for “fair treatment” on the measures announced in the pre-Budget report.
It comes following reports today of last-minute moves by the government to alter taxation levels on whisky and most likely all spirits, including alcopops.
Chancellor Alistair Darling unveiled an eight per cent increase in alcohol duty to offset the cut in VAT – leaving the trade astonished. It means pubs will have to cope with the duty rise even when VAT levels return to 17.5 per cent at the end of next year.
The four points the BBPA is arguing on are:
• The tax plans announced on Monday are not, as the Chancellor stated, a balancing measure, but are increasing costs. The duty changes are not off-set by VAT reductions, but in fact result in price increases.
• That any tax changes announced for whisky and spirits should apply to the whole alcohol sector
• That there needs to be a more realistic transition period for the tax changes to be implemented – preferably January 2009.
• All sectors need to be fully consulted by the Treasury before any changes are tabled.
|
