9% Duty Hike
9% Duty Hike
The new UK duty rate is £21.35 per litre of alcohol as compared to £19.56 an increase of over 9%. The chancellor has stated that UK duty will rise by 2% over inflation for the next three years in addition. It will be nearer £25 a litre by 2011!
Here are the EU wide duty rate comparisons for spirits - I have added the new rate, but at the January exchange rate for direct comparison.
Harmonisation of Duty rates EU wide has been a stated aim of the EU. A cursory glance would suggest that at 1000 euros per hectolitre of pure alcohol and 75% of the EU membership would find that quite easy to adopt. Apart that is from the Scandinavian countries, Monte Negro and the UK. Imagine - a third of today’s rate.
Likelihood of ever happening? Fat chance - not with all that revenue going to all those kids the government are committed to dragging out of abject poverty in the UK...

Perhaps the duty rise has more to do with reclaiming lost revenue than booze drinking or children in poverty. 70% of EU countries have had a rise in duty revenue over the same period.

Friday, 14 March 2008