HM Customs and Excise C&E 2

SPIRITS DUTY FROZEN FOR THIRD YEAR RUNNING

21 March 2000

The duty on spirits has been frozen for the third year running. The duties on most other alcoholic drinks will be increased in line with inflation in order to maintain the revenue. Duty on spirits is now 35% less in real terms than it was twenty years ago.

DETAILS

Main Alcohol Rates

The new rates take effect from 1 April 2000.

The changes will have the following effect on tax (duty plus VAT):

Product Effect

Pint of beer +1p

75cl bottle of table wine +4p

Litre bottle of still cider +1p

33cl bottle of higher strength alcopop +1p

NOTES FOR EDITORS

1. This is the third consecutive freeze on spirits duty and helps both UK producers and UK exporters.

2. Tax on beer (duty plus VAT) will be increased by 1p per pint. Equivalent percentage increases have been applied to cider and most categories of wine. This is necessary to maintain the revenue.

3. There has been no increase in the beer, wine and main cider duty rates since January 1999.

4. The estimated revenue cost of this alcohol package is £25 million against an indexed base in 2001/02. The RPI impact is estimated to be 0.02%.

5. There are details for businesses in Budget Notice 38/2000 which is available from Customs and Excise Advice Centres and on the Customs and Excise website.

Media enquiries only to HM Customs and Excise, Communications Division, New King's Beam House, 22 Upper Ground, London SE1 9PJ.

Telephone: 020 7 865 5471/5472/5872.

To contact the Duty Press Officer out of hours please call (020) 7620-1313.

This news release and other information about HM Customs and Excise can be found at our website: www.hmce.gov.uk