Scottish Government plans to “tax away” revenues generated by the introduction of minimum pricing could add 50p to a pint in Scottish pubs.
That’s the warning from the Scottish Beer and Pub Association (SBPA), which said the move could have a “major impact on the viability of pubs in Scotland”.
The fears centre on the Scottish Government’s plan to increase duty to ensure alcohol retailers don’t benefit financially from the introduction of minimum pricing, which is being proposed via the upcoming Alcohol Minimum Pricing Bill.
The SBPA said: “In order to deliver the Scottish Government’s stated aim of ‘taxing away’ the revenues generated by the introduction of minimum pricing at a rate of 45p per unit of alcohol with no benefit to producers or retailers, we estimate that the Scottish Government would need to increase beer duty in Scotland by 102%.
“On the basis of a 4% pint duty (and the VAT on that duty) the tax a pint of beer in Scotland would go up from 50.6p to 102.2p, with a consequent commensurate increase (of 50p) in the price of a pint of beer. It should be noted that the alcohol duty on beer (beer duty) was increased by 7.2% in the March 2011 Budget. The total increase in beer duty since March 2008 stands at 35.4%.”
SBPA chief executive Patrick Browne said: “This would be disastrous for Scotland’s pubs if the Scottish Government used control of alcohol excise duties to tax pubs for a benefit they never got from minimum pricing of alcohol. On average three pubs in Scotland are closing every week and a 50p hike in the price of a pint would make it even more difficult for Scotland’s pubs to continue to trade.
“Hopefully the Scottish Government see sense and rule out any beer duty increases for pubs when they are already charging prices which are well above any minimum price the Government could introduce.”
The Alcohol Minimum Pricing Bill is due to be introduced this autumn.
