Alcohol and tobacco sales tax may be reintroduced
Scottish ministers will investigate reintroducing the public health supplement, which was scrapped by the government back in 2015.
This tax was initially introduced in 2012 and saw large retailers whose rateable value was over £300,000 paying to sell alcohol and tobacco. It raised over £95 million before being scrapped three years later.
However, in the Government’s 2024/25 Budget document, unveiled by finance secretary Shona Robison just before Christmas, it states this tax could be reintroduced by the end of the year.
The document says: “Recognising the importance of sustaining the public finances and public services, we are also committed to exploring the reintroduction of a non-domestic rates public health supplement for large retailers in advance of the next budget, while continuing work over the coming year to explore an infrastructure levy, to be implemented by spring 2026.”
Business leaders have warned the tax could damage town centres and staff pay.
David Lonsdale, director of the Scottish Retail Consortium, said: “A new levy on grocers smacks of incoherent policy making within government.
“It’s a bizarre way to behave when other ministers are looking to grocers for help to implement new regulatory measures including in-store restrictions on alcohol marketing, curbs on selling products high in salt and sugar, and a likely rise in alcohol minimum unit pricing.
“A surtax could also have consequences for the state of our high streets and town centres.”
A spokesman for the Scottish Government said: “This announcement in the Scottish Budget signalled ministers’ intention to explore the reintroduction of a public health supplement.”