Alcohol and tobacco duty up 2%

22 April, 2009

Chancellor Alistair Darling has announced a 2% increase in alcohol duty from midnight tonight in the Budget.

Despite lobbying from all sectors of the drinks trade, including OLN's Enough is Enough campaign, calls for a duty freeze have been ignored.

The Wine and Spirit Trade Association has condemned today’s announcement by the Chancellor that he intends to proceed with plans to raise taxes on alcohol this year.

The news brings further misery to hard-pressed consumers and threatens more job losses in a sector already facing record numbers of business failures and worsening trading conditions.

A spokesman said: “Today’s Budget set in train a 2% above inflation tax escalator on alcohol which, combined with last year’s 17% leap in excise duty, will raise duty on alcohol by around 40% by the time of the London Olympics.”

Tobacco duty will also be hiked by 2% from 6pm tonight.

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