Tax on wine and spirits rises - how much will your favourite drink cost now?

Wine lovers and gin drinkers will be among those hit hardest by new alcohol tax hikes that will see the cost of some beverages rise by up to 44%.

From today (1 August), alcohol duty has increased by 10.1% - and drinks are now taxed according to strength rather than category.

Here, Which? explains what's happening to tax on alcohol and how much your favourite tipple will now set you back.

Major shake-up of alcohol tax

After being frozen since 2020, alcohol duty will rise by 10.1% from 1 August. However, a major shake-up of the system means some products will now be taxed more heavily than others.

All items are now taxed based on alcohol by volume (ABV) - previously that rule only applied to beer and spirits. In other words, the stronger the drink, the higher the tax.

It's not all bad news, though. While tax on beer sold in supermarkets will rise, the government has announced that tax on draught pints will not change. Tax on sparkling wine will also drop.

The Office for Budget Responsibility is estimating that the new alcohol tax will raise £13.1bn in the 2023-2024 financial year.

Find out more: 

What the tax changes mean for your favourite tipple

The table below shows how the tax duty changes will affect the price of different alcoholic drinks according to strength.

Prime minister Rishi Sunak claims the new rules protect British pubs and keep the cost of a pint the same. The government also hopes to boost home-grown winemakers by reducing duty on English sparkling wine.

Consumers that buy alcoholic drinks from supermarkets will see prices rise on a number of products. According to data from the Wine and Spirit Trade Association, the new tax duty rules will mean the duty on a bottle of wine will rise by 20%, from £2.23 to £2.67. 

Tax on a bottle of vodka will go up from £7.54 to £8.31, while a bottle of port will see one of the biggest increases, rising by 44% from £2.98 to £4.28.

Miles Beale, chief executive of the Wine and Spirit Trade Association, claims it is largest increase in wine duty since 1975 and believes it will heap more misery on consumers during the ongoing cost of living crisis. 

Find out more: 

Tips on cutting the cost of supermarket shopping



source https://www.which.co.uk/news/article/tax-on-wine-and-spirits-rises-how-much-will-your-favourite-drink-cost-now-aJpJC7L4NVyp
Post a Comment (0)
Previous Post Next Post