THE WINE MERCHANT. An independent magazine for independent retailers
Issue 109, January 2022
Dog of the Month: Bagel Melville & Mayell, Norwich
Time is running out to force U-turn on crazy duty plans Objections to the Chancellor’s punitive sliding scale of duty on wine must be submitted by the end of this month
T
he wine trade has until the end of
the current duty rate for wine at a strength
variation in duty calculations on mixed
this month to explain the damage
of 11.5% abv. But for every 0.5% of alcohol
pallets of wines. They also point out that
that is widely expected as a result
above that, duty will increase.
some wines see fluctuating alcohol levels
of the Chancellor’s overhaul of the duty system. The new regime will penalise most types
As well as adding to retail prices – a bottle of port would typically see an overnight price increase of £1.09 – the
from vintage to vintage, adding to the admin burden. There was indignation in the
of wine, applying a sliding scale of taxation
changes are expected to cause supply-chain
trade following Rishi Sunak’s budget
based on its alcohol content.
havoc.
announcement in October, which gave the
The new system is planned to maintain
Importers are worried about the vast
impression that the duty system was being simplified and streamlined rather than complicated with a ladder of duty rates for wines between 8.5% and 22% abv. The new system, due to come into force next year, at least has the redeeming feature that it will no longer discriminate between still and sparkling wines. Treasury minister Helen Whately maintains the new arrangements will be “simpler to use, fairer to all producers, clearer and more consistent”. The plans were drawn up following a review of the duty system, which resulted in 106 responses from stakeholders and included roundtables attended by public health groups, trade associations and economists. The wine trade has until January 30 to respond to the proposals, which must be submitted using a templated form hosted
Rebecca Smithson of Bottle London in Highgate is one of many indies around the country raising money with wine events for charities close to their hearts. Read more on pages 12 and 13.
on the HMRC website. Search “HMRC alcohol tax proposals” or follow the link at winemerchantmag.com.
