The Wine and Spirit Association (WSA) has welcomed the European Commission's report on duty rates.
The report found the difference in duty rates across Europe had lead to smuggling. It recommended countries with high duty rates freeze duty while those with lower rates increase it in line with inflation until levels are consistent across member states.
The WSA has added its support to the report, which also echoed its Budget submission to the Treasury which asked for the "luxury surcharge" on sparkling wine to be abolished.
A minimum and maximum rate of tax for each category of alcoholic drink is recommended and any country above the maximum rate will not be able to increase duty.
This means in order to fall between the boundaries, the UK would have to reduce rates by about 50 per cent for still wine and beer and by between 24 per cent and 67 per cent for other products. Sparkling wine duty should be cut to bring it in line with still wines.
WSA director Quentin Rappoport said: "We are delighted to see so many of our arguments accepted in the report and urge the Chancellor to go further and actually start a systematic programme of duty cuts.
"It makes no sense at all for us to be in a common market but not be competing on a level playing field - the UK trade and the exchequer lose out every time a bottle is bought by Brits abroad and in the longer term the consumer is adversely affected by increased crime as a result of smuggling and fraud."
Related stories:
Government confirms sliding scale of beer duty (1 March 2002)
Trade groups slam Government spirit plan (25 February 2002)
Report advises freeze on duty (21 February 2002)
Parliamentary wine club formed to tackle fraud and duty (15 February 2002)
Smuggling costs £750m in lost duty (15 February 2002)