Up to 38,000 pubs and bars which have seen cuts in the tax they pay on the draught products they serve will be better off thanks to changes to the way Alcohol Duty is calculated.
The cuts will make pints and other products sold on tap 11p cheaper than supermarket equivalents, in a bid to help the hospitality industry. It means they can finally compete on a level playing field with supermarkets and continue to be a key part of their local communities.
The changes are designed to modernise and simplify the Alcohol Duty system which has been in place for the last 140 years – changes the Government claims are only possible to make now the UK has left the EU.
What Are The Key Alcohol Duty Changes
- All products are taxed in line with alcohol by volume (ABV) strength, rather than different duty structures for different drinks;
- Fewer main duty rates, from fifteen to six, to make it easier for businesses to grow and operate;
- There will be lower taxes on lower alcohol products – those below 3.5% alcohol by volume (ABV) in strength – a huge growth area in the drinks industry;
- All drinks above 8.5% ABV will pay the same rate regardless of product type.
However, it also means other drinks with more than 8.5% ABV will become more expensive. For example, those partial to a port or sherry will see their favourite tipple rise by £1.30 and 97p per 75cl bottle respectively, according to the Wine and Spirits Trade Association (WSTA). Vodka will also go up 76p per 70cl bottle, and a typical 12% ABV bottle of red wine will go up by 44p.
quieter months and think about flexible work scheduling, new products or services, or other activities to tide you over.
LotusWise can help
Does your business provide Alcohol? Let Lotuswise help you figure out these new changes! Call us on 02033671106 or comment below!
