Posted: Feb 15, 2017
Sparkling wine drinkers are facing soaring prices of Champagne and Prosecco due to the “triple whammy” of Brexit, inflation and alcohol duty.
Current tax rates mean that 55 per cent of the cost of an average-priced bottle of wine is spent on duty and VAT - with rates added to sparkling wine even higher.
And now experts have predicted the cost of fizzy wine will rise further. The price of Prosecco is set to increase by 59 pence per bottle and champagne soaring by £1, according to industry body The Wine, Spirit and Trade Association.
The body warned the hike will “be devastating for the trade” in the UK.
The association said that, already, the average drinker in the UK pays around £206 in alcohol duty per year.
It said the price increase is a culmination of higher inflation, the impact of the pound’s devaluation due to Brexit and the potential for duty increases.
Miles Beale, the chief executive of the WSTA, urged the Chancellor to consider reducing alcohol taxes to protect the industry.
He said: “With Brexit costing 29 pence per bottle and rising inflation indicated by the Bank of England last week adding a further 17 pence, further duty rises could make it a triple whammy for consumers who are already paying a staggering amount of wine and spirit duty.
“We are urging Philip Hammond to recognise the monumental challenge facing an industry that supports 270,000 jobs and contributes £19.9 billion to the economy by making a 2 per cent duty cut.”
by Chloe Chaplain February 14, 2017
Source: Evening Standard
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