Plea to tackle crippling tariffs on whisky

THE UK Government must “redouble” its efforts in removing crippling whisky tariffs, despite the freeze on alcohol duty in the Budget.

The Scotch Whisky Association (SWA) said that the Chancellor has offered some breathing room to distillers facing the continued 25 per cent tariff by freezing spirits duty.

The Chancellor announced a duty freeze across all four alcohol categories – cider, beer, wine and spirits.

The duty rate on spirits remains £28.74 per litre of pure alcohol, meaning that of the £15.01 average price of a bottle of Scotch Whisky, £10.55 is collected in tax through duty and VAT.

The SWA had called on the UK Government to cut spirits duty to support the industry as it continues to suffer from a 25% tariff on exports of single malt Scotch whisky to the United States

SWA chief executive of Karen Betts said: “The freeze on duty announced by the Chancellor is good news for hospitality and gives distillers some breathing space in the face of some of the worst trading conditions anyone can remember – caused by a combination of US tariffs, the coronavirus pandemic, and the end of the Brexit transition period.

“What’s really important to us is that the Government redoubles its efforts to resolve the 25% tariff imposed by the US on single malt Scotch whisky.

“It is causing real damage to our US exports, which have fallen by over half a billion pounds since the tariff came into effect. And it risks impacting permanently market share in the US.”