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Alan Reid MP

Alan Reid MP writes… Time for the Chancellor to be fair on Scotch

By Alan Reid MP | Wed 12th March 2014 - 11:48 am

WhiskyAs the local MP for Islay, I see frequently just how important whisky is to the island. Eight distilleries (and another planned), and the world famous brands they produce, help to drive the local economy and attract tourists from around the world to a remote corner of the Scottish west coast.

What is less easy to understand is why the UK continues to penalise the industry in its home market. Today, nearly 80% of an average priced bottle of Scotch Whisky – four pounds in every five you spend on a bottle – is accounted for by tax, making whisky one of the UK’s highest taxed consumer products.

Excise duty on whisky has increased by 44% since the introduction of an annual 2% above inflation duty escalator in 2008. The result has been predictable and damaging. The UK market for Scotch is now 12% lower than it was when the escalator was introduced, a loss of 6,500 bottles from the market every day.

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Posted in Op-eds | Also tagged , , and | 5 Comments
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