Alcohol tax is to be levied according to a drink’s strength under new principles set by the government which look to support “wider UK tax and public health objectives”.
Drinks with alcohol by volume (ABV) of 3.5% or below will be taxed a lower charge, while drinks above 8.5% ABV will stay the same, regardless of whether it is wine, spirits or beer, the BBC reported.
According to the Wine and Spirits Trade Association (WSTA), port and sherry will see some of the highest increases, with £1.30 and 97p more tax per 75cl bottle, respectively.
Vodka will also go up 76p per 70cl bottle and an average 12% ABV bottle of red wine will rise by 44p.
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However, sparkling wine, which was previously taxed at an elevated rate than still wine, will now be 19p cheaper for a 12% ABV bottle.
While tax on beer will be 4p more in shops, this will not change in pubs, which prime minister Rishi Sunak said would support the hospitality sector and “reduce the price of a pint.”
Chancellor Jeremy Hunt said: “The changes we’re making to the way we tax alcohol catapults us into the 21st century, reflecting the popularity of low-alcohol drinks and boosting growth in the sector by supporting small producers financially.”
However, the WSTA told the BBC that the move would “impose more inflationary misery on consumers”.
“Ultimately, the government’s new duty regime discriminates against premium spirits and wine more than other products.”
