WHISKY producers have called on the Government to cut the rate of duty paid on wine and spirits, saying it could boost public finances by more than £1bn.
The Scotch Whisky Association (SWA) has joined forces with the Wine and Spirit Trade Association (WSTA) to launch the Drop the Duty!' campaign.
The groups want to see Chancellor George Osborne introduce a "modest" two per cent drop cut in alcohol duty at the next UK Budget in March 2015, which they claim could raise £1.5 billion through increased investment, sales and jobs.
UK consumers currently pay nearly 80 per cent tax on an average priced bottle of spirits and almost 60 per cent on an average priced bottle of wine.
The campaign says that this is equal to a 79 per cent tax on gin, or £7.92 for an average bottle, a 77 per cent tax on whisky at £7.85 a bottle and and a 56 per cent tax on a bottle of wine.
Cutting the rate of duty would also lead to greater tax income for the Government from corporation tax and VAT on alcohol products.
David Frost, chief executive of the Scotch Whisky Association, said: "If you buy a bottle of Scotch Whisky to celebrate Christmas and New Year, nearly 80 per cent of the average price you pay goes straight to the Government.
"This is unfair on both consumers and the Scotch Whisky industry. We are calling for George Osborne to do the right thing and cut excise duty by two per cent in next year's Budget.
"New evidence shows that lowering these draconian levels of excise duty would actually boost public finances and the economy, as well as benefit consumers."
Miles Beale, chief executive of the Wine and Spirit Trade Association, added: "The wine and spirit sector already makes a significant contribution to the wider hospitality industry and to the British economy.
"Independent analysis shows that the sector's economic contribution could be £3.9 billion greater if it weren't for the UK's sky-high duty rates."
The campaign is being backed by the TaxPayers' Alliance, who say that the current tax on alcohol is unfair.
Jonathan Isaby, chief executive of the TaxPayers' Alliance, said: "Politicians keep talking about a cost of living crisis but if those on the lowest incomes fancy a drink, they will pay through the nose in taxes.
"This is not only hurting hard-pressed consumers, but jobs and growth too. The Chancellor has one more chance to be fair and cut the duty on wine and spirits before the election, and it's crucial that he takes it."
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