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Liquid Refreshment

12

Mar

You’re Gonna Pay!

Jacob Gaffney  in News , , ,

It’s official, InterWined readers; moments ago Alastair Darling, the Chancellor of the Exchequer for the UK Treasury, raised our taxes on wine.

The taxes are raised by six percent for 2008, with a two percent rise every year after. So, that translates to a 14 pence rise in tax per bottle. UK wine retailer Zelas said such a rise will mean 50p to £1 more per bottle once the tax is trickled down to the consumer.

And, it’s more for Champagne! Tax on a bottle of sparkling wine has increased by 18p.

I know that’s bad, but it’s worse for spirits lovers — 55p more for a bottle of booze.

But, here’s the real slap in the face — beer went up only 4p per pint!

I guess saving taxpayer money by hiking the price of draught through the roof in order to reduce the amount of violent lager-filled yobs on the street and, therefore, reduce the strain on emergency services was too much of a slippery slope strategy for Darling.

But, why do wine drinkers have to suffer so?

Oh boy, now here come the tears…

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David McDuff
David McDuff said: March 12th, 2008 at 5:59 pm

What’s the logic for the higher tax on sparkling wines? I hope it’s not simply that they’re perceived as goods of greater luxury.

jacob gaffney
jacob gaffney said: March 12th, 2008 at 6:30 pm

The wording of the Budget does not include an explanation, leaving us to only guess at the logic. I would suspect it’s because sales of Champagne are set to soar in the UK in the next few years.

Sean
Sean said: March 13th, 2008 at 9:08 am

My problem with the announcement on alcohol taxes is a straight-forward one. The government hates the carrot, but loves the stick.

While I think that it’s fair to say that the chancellor is suggesting the alcohol tax increases as some form of behavioural modifier (“Increase the tax on alcohol to discourage alcohol consumption”) that should be applauded by those concerned with the health of the nation the way environmentalists might applaud his comments and threats on plastic bags, I also think that it’s fair to call this suggestion simple spin-doctoring. If the government really wanted a behavioural modifier to help overcome the proliferation of binge drinking among Britons and its myriad after-effects, it would seek changes in the law to prevent supermarkets from placing alcohol on special and it at rates well below market value (£7 for a 24 case of beer, for instance) and/or ear-mark the existing tax money for medical treatment and research.

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