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Call for brake on spirits tax rises

Published:  23 July, 2008

The UK's Gin and Vodka Association has called on the Chancellor not to touch spirits taxation with spiralling production costs hitting the industry.

The Association claims rising inflation, a 100% rise in cereal costs and the exisiting punitive tax rate are all putting a serious burden on spirits producers.

The GVA said: "The Chancellor is already squeezing the maximum tax out of spirits and any increases in tax rate will reduce revenues."

It accepts its role in promoting responsible drinking but it believes duty increases are not the solution to harmful drinking.

Vital statistics, according to the GVA

68% the average tax on a bottle of spirits

43% more tax on spirits compared with beer and wine

100% rise in cereal costs in the past year