Long Term Aim of Equal Duty Remains

The Scotch Whisky Association said it was disappointed that the Chancellor had not continued the moves begun in the last Budget to narrow the tax discrimination against spirits.

The Association said the Chancellor had missed another opportunity to dismantle the archaic alcoholic drinks taxation structure.

The Association’s Director General, Hugh Morison, said: "The present system of duty is based on a tax structure and drinking patterns from the beginning of this century. The Chancellor took a first step to correcting the outdated system last year. But he has now stopped, and without a programme of duty cuts, reducing the tax discrimination against Scotch over a series of Budgets, we will make no progress towards the elimination of this unjustified tax discrimination.

"The Chancellor and the Treasury must introduce a consistent policy reducing the tax on spirits compared with other drinks to avoid long-term damage to a major UK industry, and reduced sales at home by encouraging shoppers to travel to France.

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