WSTA: Alcohol tax hike would cost Treasury £200m
An increase in alcohol tax would put 50,000 jobs at risk and cost the Treasury £200m while doing nothing to combat binge drinking.
That is the stark warning to Chancellor Alistair Darling, as he prepares for the 12 March budget, from the Wine and Spirit Trade Association (WSTA).
In its budget submission, the WSTA warns the Chancellor that by caving in to Alcohol Health Alliance demands for a 10% increase in tax, he would simply be penalising the majority of sensible drinkers and costing the British economy millions of pounds.
WSTA analysis reveals that a 10% increase in tax would only lead to a 1.9% reduction in the consumption of wine and a 4.8% reduction in the consumption of spirits.
The trade body said a 10% increase on tax would mean;
• Combined revenue loss from duty and VAT of £102m for wine and £92m for spirits• Loss of £1,572m for wine and £1,262m for spirits to the economy• Loss of 28,000 jobs in wine and 23,000 in spirits industry
"Raising the price of alcohol by raising taxes will unfairly punish the majority of responsible drinkers for the misdeeds of a small minority," said chief executive Jeremy Beadles.
"Our research shows that any such increases will do little to address problem-drinking while hurting the economy and the Treasury.
"It simply does not make any sense."
• We are also petitioning the Prime Minister directly. To sign our petition click here No Tax Increase on Alcohol.
If you are on Facebook, join our group and invite your friends to by clicking here Facebook: No Tax increase on alcohol!
