 Consumers are set to be hit by the biggest single increase in alcohol duty in almost 50 years. Tax hikes of up to 20% will hit people hard who are already struggling with the cost of living crisis. The plans by Rishi Sunak and chancellor Jeremy Hunt will see alcohol taxed based upon its strength. This has led wine and spirit manufacturers to hit out at the government and complain about being unfairly targeted. Today's announcement coincides with Mr Hunt's pledge to end the freeze on alcohol duty on August 1. Mr Sunak described the overhaul as 'the most radical simplification of alcohol duties for over 140 years', enabled by Britain's exit from the EU. It will increase by inflation at 10.1% and while this is bad news, the duty charged on draught pints across the UK will be cut by 11p in August. But the British Beer and Pub Association (BBPA) said brewers will pay 10.1% more tax on bottles and cans of beer from Tuesday, meaning tax will make up around 30% of the cost of a 500ml bottle. Wine and spirit manufacturers have hit out at the government over the news (Picture: Getty Images) Despite the draught freeze, the BBPA said the tax increase on packaged beer will add an extra £225 million of costs per year across the industry. Below is a list of how much alcohol prices will increase. Bottle of wine Increase: Duty rise by 44p on a bottle of wine. When combined with VAT, it will mean consumers will pay an extra 53p per bottle of wine, according to the Wine and Spirit Trade Association (WSTA). Cream sherry Increase: Duty rise of 18% so cream sherry will go up from £2.98 to £3.85, with VAT adding up to an increase of more than £1 a bottle. Port Increase: Duty and VAT will add £1.50 to the price of a bottle. Gin Increase: Duty and VAT will add 90p to the price of a bottle. Vodka Increase: Duty and VAT will add 90p to the price to the price of a bottle. Industry le){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
Consumers are set to be hit by the biggest single increase in alcohol duty in almost 50 years.
Tax hikes of up to 20% will hit people hard who are already struggling with the cost of living crisis.
The plans by Rishi Sunak and chancellor Jeremy Hunt will see alcohol taxed based upon its strength.
This has led wine and spirit manufacturers to hit out at the government and complain about being unfairly targeted.