The UK’s Wine and Spirit Trade Association has warned that the recent increase in wine duty could stifle the growth of its booming industry. The tax increase on wine came into effect as of the 1st February after it was singled out by Chancellor Philip Hammond in the country’s 2018 Autumn budget announcement.
The tax will increase the sale of wine by up to £0.09 in addition to the VAT which could increase the price of wine by a further 20 percent.
Miles Beale, WSTA chief executive, believed that the increase could potentially stifle the country’s flourishing wine industry. “This comes at a particularly bad time for the UK wine industry with the threat of a no-deal Brexit still on the table. These price rises are the direct result of the Government’s refusal to back the UK’s wine industry and its active decision to pass on a punishing duty rise; as well as the Government’s inability to resolve the UK’s trading relationship with the EU, from where over half our wine is sourced.”
Wine was said to be singled in a move to support local pubs.