News
“Treasury seeks views on alcohol taxation
Review of alcohol taxation and pricing
The
Government is committed to reviewing alcohol taxation and pricing to
tackle problem drinking without unfairly penalising pubs, responsible
drinkers or local industry. Here you can find further information about
the continuing work on the review.
Recent announcements
The Budget announced that the Government would review alcohol taxation and pricing and report in the autumn.
It
also announced that secondary legislation will be introduced to
increase the tax on cheap, strong ciders. This legislation will change
the definition of cider by introducing a minimum juice content to
qualify to pay duty at the cider rates. Products with low juice content
will be taxed at the more appropriate made-wine rate from September 2010.
Nature of the review
The
review of alcohol taxation and pricing is being jointly led by the Home
Office and HM Treasury. The Home Office will lead work on pricing and
the Treasury on taxation matters.
The review of alcohol taxation will consider:
- the rates and structure of duty on different products;
- the differential between duty rates on low and high strength products; and
- the interaction between tax and price.
In considering potential tax measures, the review will consider a number of impacts including (but not limited to):
- tax receipts;
- impact on the industry and wider economy;
- public order and public health.
Potential
tax measures will have to reflect the legal and practical constraints
on the alcohol duty regime. Measures will also need to reflect the
pressures on the fiscal position and the Government’s commitment to
reducing the deficit as its highest priority.
How to get involved
At this
stage, there is no formal consultation on specific alcohol taxation
proposals. Interest groups are welcome to submit proposals consistent
with the scope outlined above but it is likely that the review will
consider measures including:
potential
options to increase the taxation of high-strength drinks; and other
targeted measures that can directly impact on public order or public
health outcomes.
In
considering any responses, the Government will be particularly
interested in the provision of robust evidence to demonstrate the
economic or social impacts of any proposals. To contribute to the policy
making process, any responses are required before 31 August 2010 to
allow the Government to report in the autumn. Earlier submission would
be helpful where this is possible.
All
responses will be acknowledged but it will not be possible to reply to
all individual representations. Any information provided could be
disclosed under the Freedom of Information Act 2000. If you are planning to submit any confidential material please contact the review team in advance.
The
Treasury will be holding a number of workshops over the summer to
discuss the review. If you would like to contribute to the review;
attend a workshop; or have any queries please contact the review team via email.