Chancellor Rishi Sunak has announced a raft of changes to alcohol duties that he promised will bring the cost of a pint in the pub down by 3p “permanently”.
Alcohol will now be taxed on the basis of its strength rather than the current system, which has been in place for decades and which the Institute of Fiscal Studies called “a mess”.
Mr Sunak said the new steps for alcohol duty will make it “simpler, fairer and healthier”.
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The changes, which will take effect from 1 February 2023, are:
• The number of duty rates on alcoholic drinks will be cut from 15 to six – “the stronger the drink, the higher the rate”, Mr Sunak said
• All drinks above 8.5% ABV will pay the same rate of duty – so rose will come down by 23p per bottle while strong beer will be more expensive
• Fruit ciders and low alcohol spirit drinks, such as G&T in a can, below 3.5% ABV will have lower rates
• A new Small Producer Relief will give tax reliefs to small brewers and distillers of beer, cider (for the first time) and other alcoholic drinks less than 8.5% ABV
• Sparkling wine’s 28% premium duty will be cut so it is the same as still wine of equivalent strength
• Draught relief – a lower rate of duty on draught beer and cider from containers over 40 litres, with a cut of 5%
• An alcohol duty rate rise will be cancelled from Wednesday
Draught pints will be 3p cheaper ‘permanently’, Rishi Sunak said
How much will your favourite drinks be?
• Pint of Stella Artois: £3.80 (-3p in pub, no change in shop)
• Pint of Magners: 71p for can in shop, £3.50 pint in pub (-0.5p in shop, -2p in pub)
• Kopparberg strawberry and lime: £1.65 for…
Source : skynews
