A bid to cut the price of a dram has been launched in the run-up to Hogmanay.
The Scotch Whisky Association is urging Chancellor George Osborne to scrap the alcohol duty escalator – which automatically increases duty 2% above inflation – on grounds it is damaging the industry and hitting hard-pressed consumers.
The association believes “calling time” on the measure in the next budget would show that the government recognised the contribution the industry makes toward the UK economy.
The national ‘Call Time on Duty … Be Fair George’ campaign, which launches today, aims to encourage consumers to contact their local MPs and lobby for dropping the escalator.
The association argues the system is putting pressure on household budgets at a time when salaries are failing to keep pace with the cost of living.
Chief executive Gavin Hewitt said: “Our message is clear – it is time to be fair to consumers and the scotch whisky industry.
“Tax at almost 80% on the price of a bottle of scotch whisky is unjustifiable. It penalises consumers. It also harshly treats the industry which is vital to the UK’s export performance.
“The UK is near the top of the league table in taxing alcohol. This sends the wrong message to overseas governments when they consider their tax treatment of scotch whisky imports.”
Whisky exports reached £4.3billion last year, representing 25% of UK food and drink exports.
The industry claims that, despite this success, it is continually being penalised with tax and VAT now representing 79% or the price of an average bottle of scotch sold in the UK. The annual increase in duty above inflation has increased tax on a bottle by 44% in the past five years.
The association said sales have declined by 12% in the UK since the escalator was introduced in March 2008.
It said whisky drinkers are now paying 50% more duty than beer drinkers, since beer was removed from the escalator and beer duty scrapped in the 2013 budget.
The campaign also points out that scrapping the escalator would boost the drinks industry’s contribution to the exchequer by £240million in 2014 alone.