Philip Hammond to slap 7p on price of wine to pay for freeze on fuel duty
The Chancellor may have to increase “sin taxes” after the Prime Minister axed his plan to raise petrol taxes
PHILIP Hammond is mooting a 7p tax slap on a bottle of wine to pay for a freeze on fuel duty.
The Chancellor is gearing up to hike sin taxes on booze after Theresa May forced him into a petrol corner - to the fury of campaigners.
Last night English and Welsh wine makers urged him to scrap the planned rises and support the fledgling home grown industry.
In a letter to Mr Hammond and Environment Secretary Michael Gove, 13 makers have called for a freeze on wine duty.
Current tax duty means the cost of more than half of a bottle of wine (55 per cent) is taken by the Treasury in tax and VAT.
Britain’s biggest wine producers fear a 3.4 per cent rise in line with inflation will see prices rise by 7p on wine and 9p on fizz.
They insist the significant tax burden restricts growth, is damaging to rural communities and want lower duty like other EU countries.
Miles Beale, chief executive of the Wine and Spirit Trade Association said: “The Chancellor is planning to take the fizz out English wine makers success by adding to its already high tax bill this year, hampering the industry’s ability to grow, invest export and create jobs.
“We therefore urge the Chancellor to support this home-grown industry and freeze duty in the November budget.”
Chris White, CEO of Denbies Wine Estate in Surrey, added: “A duty freeze would also stimulate further our opportunity for export.
“We would like to see the Government adopt a model employed in all other EU countries where the lower duty rate has helped support the growth of their wine industry.”
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This week the PM announced at Tory party conference that a 2p a litre tax rise would be scrapped for the ninth year in a row in a victory for The Sun’s Keep It Down campaign.
A Treasury spokesman said they did not comment on speculation ahead of the Budget on Monday October 29.
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