Wine duty receipts in the UK have reportedly fallen by 2.1% during the first six months of the financial year, according to data released by the Her Majesty’s Revenue and Customs (HMRC) Alcohol Bulletin.

The figures released by the UK government agency revealed that around £2.242bn was collected in the 26 weeks to the end of October, representing a decrease of £51m when compared to last year financial figures during this period.

The UK’s Wine & Spirit Trade Association (WSTA) said that the decrease in the wine receipts is due to government’s tax increase that specifically targeted wine drinkers. Last year the UK government registered record revenue of £4.392bn.

WSTA further estimated that if the drop of 2.1% is consistent across the current tax year, then the government revenue is expected to fall £92m in comparison to last year.

WSTA chief executive Miles Beale said: “The latest Government figures clearly show that increasing duty is not only bad for business and consumers but is bad for the public purse too.

“By delivering a freeze to beer and spirits at the last Budget the Treasury landed a bumper tax windfall. In contrast after a rise to wine duty, the Treasury lost revenue.

“We are calling on the next Chancellor to support British consumers, pubs and the wider hospitality trade by cutting alcohol duty.”

Do you see impact on recruitment in your company due to COVID-19 pandemic?

View Results

Loading ... Loading ...

WSTA added that revenues from the duty on beer rose £55m to £2.286bn, up 2.4%.

In September, WSTA criticised the UK government’s plans to introduce red tape on wine, as the move could generate more than 600,000 additional forms, costing wine businesses £70m.