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WSTA warns against fresh tax increases
The Wine and Spirit Trade Association (WSTA) has urged the Treasury to abandon next month’s planned alcohol tax hike after the latest market retail figures show a 2% decline in wine sales and flat spirits sales.
The tax escalator threatens to deliver a 6.8% tax increase on alcohol. If it goes ahead it would mean that in just three years tax on wine had increased by 35% and tax on spirits by 30%.
The WSTA warned that if the government implements the scheduled duty escalator in the coming Budget, the consequences for the industry would be dire.
“With the recent VAT increase adding to the weekly shopping bill, it’s no time to force drinks prices up further with another inflation-busting tax increase”, said WSTA chief executive Jeremy Beadles.
“The scale of tax rises on wine and spirits in recent years has cost thousands of jobs and made matters worse for households struggling to cope in difficult economic circumstances.
“Abandoning the tax escalator would help hard-pressed consumers and a sector which ought to be part of the drive to restore economic growth in the UK”, Beadles added.
Lucy Shaw, 07.02.2011