The Wine & Spirit Trade Association (WSTA) has called upon the Government to change the way wines and spirits are taxed in the UK.
In its 2006 Budget Submission, the association - representing more than 200 UK producers, importers, wholesalers and retailers - has devised a list of demands that it claims are essential to maintaining a trading environment where responsible business can survive'.
These are the five WSTA demands, and the reasons for their inclusion:
1. A radical review of the way excise duty rates for wines are set:
The way that duty is implemented puts unnecessary pressure on vulnerable parts of the industry. Currently, the duty represents a tax on margins in the supply chain, and is a significant administrative and cost burden, especially for small businesses.'
2. Pending the outcome of this review, a freeze in the excise duty rates for wine:
Increasingly tight margins will have an impact on the numbers employed in the wine trade and will threaten the viability of the smaller traders.'
3. A freeze in the excise duty rates for spirits:
We are concerned that the new strip stamp scheme regime for spirits has added significantly to costs to businesses, in particular for small companies.'
4. Parity in still and sparkling: wine excise duty rates:
The "tax on the bubble" means that duty on sparkling wine is approximately 39 pence higher than for a bottle of still wine.'
5. Specific reductions in the regulatory burden to promote business development and entrepreneurship:
We urge the Government to introduce a "risk-based" approach to duty deferment guarantees. This would reduce the cost burden for legitimate traders with a good track record.'
The WSTA has also called on the Government to implement proposals to reform licensing in Northern Ireland.
Proposals include extending licensing hours until 2am; abolishing the surrender provision (where a new licence can only be granted once an existing licence has been surrendered, to block new businesses); transferring administration from the courts to district councils; and enforcing additional powers for the police and district councils.
The opening-hours reform is due to come in in 2007, with the rest following in 2009.