§ Mr. David Price
asked the Chancellor of the Exchequer what is the current level of taxation, including excise duty, customs duty and VAT, on beers, ales and lagers; what percentage of a litre bottle of such beverages retailing at 40 pence such taxation represents; and how the level of United Kingdom taxation compares with similar taxation imposed in each of the other EEC countries.
§ Mr. Denzil Davies
Beer produced in the United Kingdom is normally sold in half-pint, pint or quart bottles. The excise duty and VAT on a pint bottle of home-produced light ale retailing at 26p a bottle represents 29.2 per cent. of selling price. It is not possible to express taxation in other EEC countries in the same manner as selling prices are not known.
The following table sets out the customs and excise duties in each member country and the appropriate VAT rate:204W
TAXATION ON BEER* OF EEC ORIGIN IN EEC MEMBER STATES Customs and Excise Duty £ per litre VAT Per cent. United Kingdom … 0.116 8 Ireland … 0.191 6.75 Denmark … 0.238 15 France … 0.005 17.6 West Germany … 0.029 11 Netherlands … 0.088 16 Belgium … 0.088 14 Luxembourg … 0.067 10 Italy … 0.029 6 * Beer of a strength of 7° proof (1,041 degrees of original gravity).