HM Customs and Excise  5
                                                17 March 1998
____________________________________________________________

SPIRITS DUTY FROZEN, MOST OTHER ALCOHOL DUTIES INCREASED IN
LINE WITH INFLATION


The Chancellor announced today that from 1 January 1999 the 
duty on most alcoholic drinks will be increased by 3.2
per cent (in line with inflation) while the tax on spirits
will remain unchanged.


DETAILS


1.  The changes will have the following effect:

Product                               Duty plus VAT

Pint of beer                            + 1p
75cl bottle of table wine               + 4p
Litre bottle of cider                   + 1p
33cl bottle of higher strength alcopop  + 1p
70cl bottle of fortified wine           + 5p


NOTES FOR EDITORS


1.  The freeze on spirits duty helps both UK producers
and UK exporters.  

2.  The revalorisation of the other main alcoholic drinks
categories in line with inflation is necessary to maintain
the real revenue yield at its current levels.

3.    The increases in line with inflation do not apply to
low strength sparkling wine and sparkling cider (and perry). 
These categories of drink are subject to separate changes
with effect from Budget day (see Press Notice C&E 6 and BN
108/98).

4.  The estimated revenue cost of this alcohol package is 25
million pounds on an indexed base in 1999/2000. The RPI
impact is estimated to be 0.04 per cent (non indexed).


5.   Full details of duty rates for traders are available 
in Budget notice BN 108/98, which is available from Customs and
Excise Business Advice Centres and from the Customs and Excise
Internet site.


Press enquiries only to HM Customs and Excise, Public
Relations Office, New King's Beam House, 22 Upper Ground,
London, SE1 9PJ.  
Telephone:  0171 865 5468/5471

Others should contact their local VAT Business Advice
Centre, listed under Customs and Excise in the telephone
book.

Others should contact their local Excise and Inland Customs
Business Advice Centre, listed under Customs and Excise in
the telephone book.

Customs and Excise Internet address: 
http://www.open.gov.uk/customs/c&ehome.htm

This news release can also be found at :
http://www.hm-treasury.gov.uk. Other Treasury material can
also be found at this address.