Diageo wants equal duty across all drinks

31 August, 2010

Diageo has called for a new approach to alcohol taxation, with a unit of alcohol charged the same duty rate across spirits, wine, beer, cider and RTDs.

In its submission to the Treasury’s review of alcohol taxation and pricing, Diageo said the easiest way to implement the measure would be to hold spirits duty at its current level and use the +2% excise duty escalator already in place to move other drinks up to spirits’ level over time.

Simon Litherland, Diageo GB managing director, said: “Alcohol is alcohol and we believe that people should know they are paying the same tax per unit whether it is a pint of Guinness, a glass of Blossom Hill or a glass of Johnnie Walker.”

Diageo says the proposal would generate between £524 million and £1.9 billion a year for Treasury coffers.

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