Taxes on beer, cider and sparkling wine in pubs are to be reduced as part of a package of measures introduced in the budget to change tariffs on alcoholic beverages and those struggling through the continuing damage caused by the pandemic. Pubs can be helped.
Drinkers would be charged higher rates for stronger drinks and lower rates for weaker ones – a system that Rishi Sunak said was “simpler, better and healthier”.
Certain high-strength beverages, such as some red wines and “white cider”, will attract more taxes, while buyers of lower-strength products, such as rosés, fruit ciders, liqueurs, and low-strength beers and wines, will pay less.
According to Treasury calculations, a planned increase in tariffs on spirits such as Scotch whiskey, wine, cider and beer would be canceled from midnight, saving drinkers £3bn in total and 3p in the cost of a pint. will be cut.
Mr. Sunak described the existing system of liquor taxes as outdated and too complex.
To encourage drinking in pubs rather than at home, Mr Sunak announced “draft relief” – a 5 percent reduction in the duty rate on draft beer and cider served from containers over 40 liters.
“This will particularly benefit community pubs that do 75 percent of their business on draft,” Sunak said.
“This is the biggest reduction in cider duty since 1923. The biggest cut in fruit cider in a generation. The biggest cut in beer duty in 50 years. It’s not temporary, it’s a long-term £100m per year British pub cut investment.”
He also revealed that hospitality, retail and leisure firms will get 50 per cent discount in business rate for one year.
The chancellor told lawmakers that any eligible business, including shops, pubs and leisure centres, would deduct up to £110,000 in tax on its premises for one year.
Mr Sunak also said he would reevaluate the system more frequently every six years, with “fair and timely” reassessments, starting in 2023.
However, Rishi Sunak dissuaded business groups from granting his desire to overhaul the widely disliked tax.
Industry leaders welcomed the changes but said more help was needed to support the sector.
Mike Kiel, chief executive of the Night-Time Industries Association, said he was “disappointed” that the chancellor decided not to extend the low 12.5 percent rate of VAT on hospitality.
“It’s a missed opportunity, and it will prevent those forecasts from getting even better,” he said.
Campaign for Real Ale (Camera) President Nick Antona said: “The introduction of the draft duty rate is a gamechanger for cask beer drinkers, cider and perry drinkers and Great British locals.
“This is something that CAMERA has campaigned on for many years and we are glad that the government has listened to our local people, supported and introduced the important principle that beer, cider and parries are served in pubs or social clubs. Tax should be levied at a different rate. Liquor is bought at places like supermarkets.”
Credit: www.independent.co.uk /