Section 180: Rates of Alcoholic Liquor Duties
Summary
1.Section 180 provides for increases in the rates of excise duty charged on spirits, wine and made-wine, and cider and perry, and an overall reduction in the rates of excise duty on beer to have effect on and after 25 March 2013.
Details of the Section
2.Subsection (2) substitutes a new rate of excise duty for spirits in section 5 of the Alcoholic Liquor Duties Act 1979 (ALDA). The previous rate of £26.81 is replaced by £28.22.
3.Subsection (3)(a) substitutes a new rate of excise duty for lower strength beer in section 36(1AA)(za) of ALDA. (This is beer of a strength exceeding 1.2 per cent but not exceeding 2.8 per cent).The previous rate of £9.76 is replaced by £9.17.
4.Subsection (3)(b) substitutes a new standard rate of excise duty for beer in section 36(1AA)(a) of ALDA. (This is beer of a strength which exceeds 2.8% and is not small brewery beer).The previous rate of £19.51 is replaced by £19.12.
5.Subsection (4) substitutes a new rate of excise duty for high strength beer in section 37(4) of ALDA. (This is beer of a strength exceeding 7.5 per cent). The previous rate of £4.88 is replaced by £5.09.
6.Subsection (5)(a) substitutes a new rate of excise duty for sparkling cider of a strength exceeding 5.5 per cent in section 62(1A)(a) of ALDA. The previous rate of £245.32 is replaced by £258.23.
7.Subsection (5)(b) substitutes a new rate of excise duty for still cider of a strength exceeding 7.5 per cent in section 62 (1A)(b) of ALDA. The previous rate of £56.55 is replaced by £59.52.
8.Subsection (5)(c) substitutes a new rate of excise duty for all other ciders in section 62(1A)(c) of ALDA. The previous rate of £37.68 is replaced by £39.66.
9.Subsection (6) provides for the replacement of the Table of rates of duty on wine and made-wine in Schedule 1 to ALDA with a new table showing the new rates of duty:
Wine or made-wine of a strength not exceeding 4 per cent: £82.18;
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent: £113.01;
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling: £266.72;
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent: £258.23;
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or more, but not exceeding 15 per cent: £341.63;
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent: £355.59; and,
Wine or made-wine of a strength exceeding 22 per cent: £28.22.
Background
10.This section increases the excise duty rates on spirits, wine and made-wine, and cider and perry by 2 per cent above the Retail Price Index (RPI) and reduces the excise duty rates on beer by 6 per cent for lower strength beer, 2 per cent for the standard rate of beer duty. The duty rate for high strength beer will increase by 4.3 per cent which will result in the total duty rate for high strength beer being reduced by 0.75 per cent.
