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Wines: Excise Duties

Question for Treasury

UIN 125010, tabled on 18 February 2022

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the impact of proposed reforms to alcohol duty on British wine producers.

Answered on

25 February 2022

As part of the alcohol duty review, the Government has announced several reforms which aim to modernise the taxation system for wine.

By moving to a duty system where all wines are taxed in reference to their alcohol content, the Government intends to incentivise innovation of lower strength wines, providing greater choice to wine consumers. In addition, the Government has announced it will equalise still and sparkling wine rates, helping to spur innovation among British sparkling wine producers.

The Treasury is continuing to engage with other Government departments and interested stakeholders on these reforms. A consultation ran from 27 October 2021 to 30 January 2022, and the Treasury is now analysing the responses.

Further detail about the impact of reforms on producers will be included in a tax information and impact note when the policy is final, or near final, in the usual way.

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