Uncertainty this fall concerning Scotch whisky rise on taxes
The spirit has maintained a consecutive 8-year freeze on fuel duty, something that soon could come to an end after a recent statement. Brexit might be to blame.
Chancellor of the Exchequer, Philip Hammond, has announced that the eight-year freeze on fuel duty could might come to an end, with a relatively obvious hint « Cost of freeze must be ‘looked at again’ »
As he looks for ways to support Theresa May’s pledge of £20bn to pay for a surplus on investment in the National Health Services (NHS), he points that that keeping the freeze could cost the Treasury £38bn over the next three years, “twice as much as we spend on all nurses and doctors each year”.
Despite the fact that whiskey creates billions in revenue for the economy and supports more than 40,000 jobs (including those in Leven at the Diageo bottling plant) the beverage is still among the highest taxed eatable (drinking) products in Europe, and The Scotch Whisky Association is well aware of that.
The Member of Parliament from the Scottish National Party, Brendan O’Hara, chairs a Commons group on Scotch whisky, and believes the “hint” is to be “ruling on unnecessary tax hikes”, stating the Chancellor should be more aware of the actual economic reality by extending the duty freeze on whisky spirits for a continuously growth of the Scottish industry.
The real budget for this fall is yet unknown, but uncertainty is present as the ongoing Brexit negotiations continue.
Don’t drink and drive. Enjoy responsibly.