Thursday, 13 December 2012
Kinverdave met with Gavin Williamson MP at Westminster to lobby for lower beer taxes. Gavin Williamson has been very supportive of the CAMRA campaign to end the 'Beer Duty Escalator’ stealth tax introduced by the last Government in 2008, and which is currently in place until 2014/15.
This escalator tax means that beer duty is automatically escalated by 2% above the rate of inflation, compounded every single year. As the inflation rises due to the recession, so does the stealth tax.
Around £1 out of every pint bought in a pub is now tax made up of beer duty, VAT upon the beer, and VAT upon the duty. Beer duty has risen 42% in the last three years. As the vatable duty increases, so does the income from the VAT, even without considering the increase in the VAT rate which has also risen to 20% adding another 5% tax upon the duty. The UK now has the second highest duty on beer in the European Union.
The hike in duty and hike in VAT taxes increase the revenue per pint for The Treasury, but in just six years, the UK has seen a 30% drop in the volume of beer sold in pubs because of pub closures. Overall, The Treasury has maintained a status quo in tax revenue, but at the expense of the beer drinker and jobs in the brewing and hospitality trade. Communities have lost their pubs, many of which have been converted to supermarkets selling cut price drinks.
CAMRA is calling for the current Chancellor to abandon the unfair beer duty escalator tax introduced by his predecessor at the next Budget.
Appended note 20/3/13 - TAX SCRAPPED