Wine campaign group calls on chancellor to cut taxes

By Joe Lutrario contact

- Last updated on GMT

Campaign group Wine Drinkers UK calls on chancellor to cut taxes

Related tags: Wine, Tax, Wine Drinkers UK

Campaign group Wine Drinkers UK (WDUK) has submitted an open letter to the Chancellor urging him to help the wine sector and hospitality businesses it supports by cutting taxes.

The letter calls for a cut in excise duty on wine and for the extension of the temporary hospitality VAT tax to be extended to March 2022 and for it to be expanded to include sales of alcoholic drinks in the upcoming budget.

"There is compelling evidence to suggest that, rather than reducing revenue to the Exchequer, an excise duty cut, and a broader VAT cut maintained for longer could result in higher Government revenues over time," the letter reads.

"A lower tax regime would help many businesses survive the continued economic impact of Covid-19, to grow in the future, and to contribute to the local economy."

The closure of on-trade venues in recent months has meant that businesses – including the supply chain which has received so little government support – have been unable to feel the benefit of the last freeze in alcohol excise duties."

"Wine businesses, the majority of which are SMEs, need additional support, for example by encouraging consumer demand to return as the economy – including hospitality and the high street – re-opens."

WDUK also argues that women pay more duty on alcoholic drinks because they are more likely to drink wine, and that a cut in wine duty would be a  way to remedy this unfairness.

WDUK is made up of wine makers, sellers and drinkers and was established in response to wine being more heavily taxed than beer and spirits, which have seen successive duty freezes. 

Wine duty, meanwhile, has risen by 39% since 2010 and has not had a cut since 1984.

Related topics: Business & Legislation

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