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Trade bodies call for revamp of alcohol duty system

The two trade bodies have jointly responded to the government’s review of the alcohol duty system, pushing for the development of a “new, more flexible, system” in order to “support economic growth, boost tax revenues and contribute to the government’s public health agenda”, they said.

“The current system of alcohol duty is a complex beast. There is without doubt scope for reviewing and simplifying it in order to get the best out of it for both businesses and the Exchequer,” they said in a joint statement. 

The submission calls for the system to be revised in order to incentivise consumption in pubs and hospitality businesses.

“What is absolutely clear is that there should be a separate, discounted rate for alcohol consumed in pubs and hospitality businesses. The benefits of a distinct rate of duty for the on-trade, which has long been advocated for by the sector, are obvious,” the statement continued.

“If we are serious about promoting healthier attitudes to alcohol, then it makes sense to incentivise safe and supervised consumption in pubs, bars and the wider hospitality sector.”

A shift in drinking habits away from unsupervised off-trade alcohol to the on-trade would also deliver a tax and employment boost, the trade bodies added.

“With the future of the hospitality sector, and indeed the entire UK economy looking perilous, the boost for businesses and their employees would be invaluable.”

The trade bodies are calling for a duty discount for draught products and a rebate for bottles or cans sold through hospitality premises, saying the new system would also simplify the way in which products are taxed with duty increasing with the alcohol by volume of the final product for each drinks category.

In September, Miles Beale, CEO of the WSTA, also highlighted the potential of a government review into excise duty.

• Miles Beale
• alcohol
• WSTA
• tax
• duty
• Government
• uk hospitality
• UKH
• BII