UK Chancellor Alistair Darling is expected to ‘tweak’ planned duty rises on whisky.
Following complaints from the Scottish Whisky Association that the Chancellor’s planned 8% tax hike on alcohol would mean about 29p on a bottle of whisky, it is thought that Darling will rethink plans.
The permanent tax hikes – planned for 1 December – come after Darling announced a 13 month cut in VAT, from 17.5% to 15%.
The British Beer and Pub Association has called for the Chancellor to apply the same tax measures to all alcohol.
The BBPA plans to make four key points to officials:
• The tax plans announced on Monday are not, as the Chancellor stated, a balancing measure, but are increasing costs. The duty changes are not off-set by VAT reductions, but in fact result in price increases.
• That any tax changes announced for whisky and spirits should apply to the whole alcohol sector.
• That there needs to be a more realistic transition period for the tax changes to be implemented — preferably January 2009.
• All sectors need to be fully consulted by the Treasury before any changes are tabled.

