 |
||||||
|
home | news | site index |
||||||
|
CLAUSE 3 : RATES OF DUTY ON WINE AND MADE-WINE SUMMARY
1. This clause increases the rates of excise duty charged on wine and made-wine of a strength not exceeding 22 per cent, with effect from 1 April 2000.
DETAILS OF THE CLAUSE
2. Subsection (1) replaces Part 1 of the Table in Schedule 1 to the Alcoholic Liquor Duties Act 1979 with a new Part 1, showing the following new rates of duty on wine and made-wine:
Part 1 a) Wine or made-wine of a strength not exceeding 4 per cent: £47.58
b) Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent: £65.42
c) Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling: £154.37 d) Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent: £166.70
e) Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent: £220.54
f) Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent: £205.82. 3. Subsection (2) brings the new Table into effect from 1 April 2000.
BACKGROUND
4. These increases, in line with inflation, do not represent increases in real terms and are necessary to maintain the revenue. Compared to rates of duty in 1993, excise duty on table wine has fallen by almost 2 per cent in real terms. 5. The increases will take effect from 1 April 2000.
6. The estimated cost of revalorisation is nil on an indexed base in 2000/2001. The estimated cost of the freeze on spirits is £25 million on an indexed base in 2000/2001. The RPI impact for the whole alcohol package is estimated to be +0.04 percentage points. |
||||||
© Crown Copyright | home |