Excise duty - cider duty: reversal
The measure
The 10% above inflation increase in cider duty announced at the March 2010 Budget is being reversed so that cider duty increases match those of other alcohol products ie a 2% above inflation increase in excise duty.
It was also announced that the Government is committed to review alcohol taxation and pricing. The taxation measures will be announced in the Autumn. As part of the review, it is anticipated that a Treasury order will be made to amend the definitions of cider and perry, to introduce a minimum apple or pear juice content to ensure that high strength ciders and perries made with little apple or pear juice pay duty at the more appropriate made-wine rate.
Who will be affected?
Producers, wholesalers and retailers of cider and, of course, consumers.
When?
The reversal of the excise duty on cider will take effect on 30 June 2010.
The reversal of excise duty on cider is a positive sign that the new Government has heard the concerns raised by the cider industry that has been badly affected by the 10% increase in the March Budget. However, close attention should be paid to the planned review of alcohol taxation which may lead to a fresh increase in the excise duties imposed on alcohol effecting both the brewing industry and public houses.
