Is Hammond Going to Hurt Us and You Again? Duty on Wine.
So it’s budget time and impending duty rises again. “Wait a minute”, I hear you say, “didn’t we just have one in the spring”?
That’s right – the autumn statement becomes the new annual budget. That will be on the 22nd November. If I was being cynical I might suggest it is to hit the increase tax button twice in one year. How is is this likely to affect a wine lover? Duty on wine is likely to increase again.
Currently set at £2.16 (£2.60 inc VAT) on each bottle, it is likely to rise to £2.23 (£2.67 inc).
Consider this; A bottle of wine with a retail of £4.99 is almost £3.00 tax. The value of the actual liquid is around 16 pence, after you deduct vineyard labour, packaging, shipping etc.. The profit to be divided between the grower, importer, wholesaler and retailer is somewhere between £1 – £1.20.
Even a bottle at £6.50 is still 50% tax, but the value of the actual wine is dramatically increased. Well worth thinking about if you want quality.