CE4 9 March 1999 ALCOHOL DUTIES The duties on most alcoholic drinks have been frozen this year. The timing of any future changes will be aligned with the Spring Budget cycle. To avoid unfair competition, the separate duty rates for sparkling cider and low strength sparkling wine are to be brought into line, completing a four year period of adjustment for producers. DETAILS Cider & Sparkling wine The new rate will take effect from 6 pm on 9 March 1999 and will have a negligible effect on revenue receipts. The changes will have the following effect on the tax (duty plus VAT) paid on an average bottle : Product Effect 75 cl bottle of sparkling cider +#1.02 NOTES FOR EDITORS Main Alcohol Rates 1. The duties on most alcoholic drinks were increased in line with inflation from 1 January 1999 (spirits duty was frozen). There will be no changes on 1 January 2000, the Chancellor has decided. The timing of any future changes will be aligned with the Spring Budget cycle. 2.The estimated cost of this alcohol package is #-10 million against an indexed base in 2000/2001. The RPI impact will be negligible Cider & Sparkling wine 3. Rates are being aligned to eliminate unfair competition. This alignment has been undertaken in gradual steps over several years to enable producers to adapt to the change. 4. Full details for traders are published in Budget Notice 29/99, 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 5471/5472 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.hmce.gov.uk This news release can also be found at : http://www.hm-treasury.gov.uk Other Treasury material can also be found at this address. # = pounds sterling