Finance Bill 2002: EXPLANATORY NOTE
CLAUSE 2: RATES OF DUTY ON CIDER
SUMMARY
1. Clause 2 decreases the rates of excise duty charged on cider and perry by 2% with effect from 28 April 2002.
DETAILS OF THE CLAUSE
2. Subsection (1) substitutes the following new rates of excise duty in section 62(1A) of the Alcoholic Liquor Duties Act 1979:
- £38.43 for strong cider replacing the previous rate of £39.21
- £25.61 for standard cider replacing the previous rate of £26.13
3. Subsection (2) makes the change effective from 28th April 2002.
BACKGROUND
4. This duty reduction represents a cut in real terms of 3.9 %, equivalent to half a penny per pint. Excise duty on cider has fallen by 12 % in real terms since 1995.
5. The reduction in duty will give a boost to the traditional cider industry which is an important part of the rural economy, accounting for half of UK apple production and providing a steady source of income for many farmers.
6. The reduction will take effect from 28 April 2002 and cost an estimated £6 million in 2002/2003.