06/09/2010 - Body calls for fair tax on beer
Some 30,000 jobs could be created by taxing beer more fairly, according to an industry body.
The British Beer & Pub Association (BBPA) said taxing alcohol on merit of its strength would also boost the Treasury by some £250 million from extra revenues from employment and corporation taxes.
The Home Office is currently consulting on plans to overhaul licensing laws.
Brigid Simmonds, BBPA chief executive, told the consultation that a fair deal for beer "would create a win-win situation for all".
She said: "The new Government now has a great opportunity to bring fairness into our duty system - with huge potential benefits for the Treasury and the UK economy."
"We've had many years of duty changes that have favoured other categories of drink - yet taxing beer fairly would create thousands of new jobs, and substantial extra tax revenues.
"Beer is also a low alcohol drink of choice and should be treated differently to other stronger alcoholic beverages.
"There is potential for a huge success story that could be grasped by the new Government. Everyone would benefit from a new and fair approach."
BBPA figures showed that under the current system, alcohol in the form of beer costs 42p per unit on average, compared with 37p for vodka, 38p for gin, and 33p for cider.
And about 29,500 jobs would be created, mostly in pubs and the hospitality sector, if the duty system was rebalanced between different types of drinks, with the duty rate for different types of drinks increasing with strength, research by Oxford Economics found.
Copyright © Press Association 2010
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