Beer taxes already among highest in the world, warns BBPA

19th January 2011, 2:30pm

Following the Government's decision on below-cost selling of alcohol this week, the British Beer & Pub Association (BBPA) has hit back as suggestions have been made that the tax on alcohol is too low in the UK.

BBPA chief executive Brigid Simmonds pointed out that UK taxes (duty plus VAT) on beer already massively outstrip rates in any of our neighbouring countries. UK tax rates are eight times higher than in France, 10 times higher than in Spain and 11 times higher than in Germany.

The BBPA analysis also reveals that Britain's beer drinkers are paying 40% of the entire beer duty bill in the European Union – despite Britain's 12% share of the total population. UK beer drinkers are paying £3.1 billion out of an EU total of £7.7 billion in beer duty revenues.

In addition, some countries, such as Italy, Portugal, and Spain, have lower tax rates of tax for pubs, bars and restaurants - to help their hospitality industries and the hundreds of thousands of jobs that depend on them.

Simmonds commented: "When it comes to alcohol taxation, we need a debate based on facts, not myths. Our alcohol taxes are among the highest in the developed world, and for beer we have had huge, 26 per cent duty increases in the past two years. What we really need is a freeze in beer duty in the Budget.

"Our already high taxes show that duty-plus-VAT cannot be used as a proxy for a minimum price for alcohol. This would have a particularly devastating effect on pubs. When it comes to tacking alcohol misuse, what we need most is improved alcohol education and awareness, and tougher, targeted enforcement of the huge range of existing laws. Pubs need lower taxes - and less red tape."

Related Articles:

• 16 Mar 2011 - A total of 25 pubs are closing every week, says BBPA
• 09 Mar 2011 - New alcohol consumption figures prove the need for beer duty freeze, says BBPA
• 01 Oct 2010 - BBPA meets with Home Office on Licensing Law change
• 02 Jun 2010 - BBPA issues guidance to pubs for World Cup
• 21 May 2010 - Pub beer sales drop by 8.8%, says BBPA
• 01 Mar 2010 - BBPA produces guide for pubs during British Tourism Week
• 04 Feb 2010 - Pubs are still closing but at a slower rate, says BBPA
• 31 Aug 2009 - BBPA publishes statistical handbook
• 29 Jul 2009 - Beer sales are beginning to improve, says BBPA
• 10 Mar 2009 - BBPA chief steps down after 10 years
• 19 Sep 2008 - BBPA chief hits back at sweeping generalisations
• 15 Feb 2008 - BBPA proposes tax freeze on beer
• 19 Nov 2007 - BBPA midlands elects new chairman

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