CAMRA wants lower duty rate on draught

The Government should set a lower duty rate on draught products to encourage customers back into the responsible environment of the pub — that's according to the Campaign for Real Ale (CAMRA).

In its consultation response to the Government's review on taxation, CAMRA called for the Government to lobby the EU for greater flexibility for members states to set alternative duty rates for the on and off-trade.

The EU directive on excise duty is set to be reviewed shortly.

"From a public health, public order and economic perspective, drinking alcohol in the sociable, well-regulated environment of a well-run community pub is preferable to alcohol purchased in the off-trade, as the landlord has a legal responsibility not to serve customers who are inebriated," it said.

CAMRA said the Government could also consider alternatives such as a duty refund on on-trade products or a levy on bottles and cans sold in the off-trade.

The group also repeated its call for the scrapping of the 2% above inflation duty escalator.

"The introduction of the beer duty escalator has imposed significant harm on pubs and pub going responsible drinkers without meaningfully reducing problem drinking," it said.

"Duty increases have undermined the economic viability of pubs and increased pub retail prices to the detriment of pub-goers while failing to have a meaningful impact on the consumption of problem drinkers. CAMRA urges the Government to abandon the beer duty escalator and to implement a long term strategy of reducing duty rates on beer."

It also asked the Government to consider:

• Retaining small breweries' relief and give consideration to its extension

• Retaining the duty exemption for very small cider producers, and give consideration to implementing a sliding scale of duty relief for small cider producers

• Restoring the ratio between beer and spirits taxation to 1995 levels

• Taking action to ban below cost selling, ideally through a minimum price mechanism which would be easy to enforce

"It is vital that any changes to alcohol taxation do not penalise well-run community pubs, small breweries or the responsible, sensible majority of consumers," CAMRA said.