Cost of wine and beer to be hiked in supermarkets next month as alcohol duty shake up comes in
03.07.2023 - 18:03
/ manchestereveningnews.co.uk
Alcohol will become more expensive from August, as taxes on some booze increase. A new system, which taxes drinks in line with their strength, will also be introduced.
First announced in the Spring Statement, from August 1, alcohol duty rates will rise by 10.1%, in line with September 2022's inflation figure. At the same time, the way alcohol will be taxed will also change, meaning alcohol will be taxed higher the strong they are.
For example, a 40% alcohol by volume (ABV) bottle of whiskey will be taxed more than a 13% ABV bottle of wine. The new system replaces the current Alcohol Duty system, which consists of four separate taxes simply covering beer, cider, spirits, wine and made-wine, reports the Mirror.
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The new tax system was announced in 2021 during the then Chancellor Rishi Sunak's autumn budget. Between the announcement and the implementation, the Government froze alcohol duties due to the pandemic and the cost of living crisis.
According to the British Beer and Pub Association, ending the alcohol duty freeze will cost the industry around £225 million. Industry experts at the Wine and Spirit Trade Association said the changes would particularly impact wine, as the unfreeze and shakeup could see taxes on a 75cl bottle rise by 20%.
This is the largest increase in wine duty since 1975 and could see the price of an average bottle of red or white wine bought in a supermarket rise by around 44p.
However, drinks purchased in pubs are set to see a price cut from August under the "Brexit pubs Guarantee". The "Draught Relief" will cut alcohol duty by 9.2% for beer and cider and 23% for wines, spirits and other