§ Mrs. EwingTo ask the Chancellor of the Exchequer (1) what representations he has had on the harmonisation of drinks duties in the European Community; and if he will make a statement;
(2) what discussions he has had with (a) his European Community counterparts and (b) the Scotch whisky industry and others on the harmonisation of drinks duties in the European Community; and if he will make a statement;
(3) what discussions he has had with representatives of the Scotch whisky industry to discuss excise taxation; what representations he has received on the taxation of Scotch whisky; and if he will make a statement.
§ Sir John CopeEC Finance Ministers have not discussed drinks duties since the adoption of the rates and structures directives last October. Treasury Ministers have since received many representations from the drinks trade on the subject of United Kingdom duties. My right hon. Friend the Chancellor of the Exchequer met a delegation from the Scotch Whisky Association on 14 January to
(i) Whisky1 Volume of whisky (thousand hectoliters of pure alcohol)2 Year-on-year percentage increase Total expenditure (current market prices) £ million Year-on-year percentage increase Total expenditure (constant 1985 prices) £ million Year-on-year percentage increase 1984 440.8 1,561 1,635 1985 461.6 4.7 1,711 9.6 1,711 4.6 1986 456.2 -1.2 1,749 2.3 1,691 -1.1 1987 446.0 -2.2 1,765 0.9 1,650 -2.4 1988 451.8 1.3 1,858 5.3 1,669 1.1 1989 430.2 -4.8 1,862 0.2 1,590 -4.7 1990 413.5 -3.9 1,967 5.6 1,528 -3.9 1991 382.6 -7.5 2,065 5.0 1,419 -7.1 1 Home produced mature whisky and whiskey. 2 Released from bond for domestic market.
(ii) Wine3 Volume of imported wine (thousand hectoliters of pure alcohol)4 Year-on-year percentage increase Total expenditure (current market prices) £ million Year-on-year percentage increase Total expenditure (constant 1985 prices) £ million Year-on-year percentage increase 1984 5,389.0 2.473 2,596 1985 5,642.7 4.7 2,701 9.2 2,701 4.0 1986 5,901.7 4.6 2,834 4.9 2,788 3.2 1987 6,278.3 6.4 3,131 10.5 2,962 6.2 1988 6,482.5 3.3 3,343 6.8 3,067 3.5 1989 6,669.5 2.9 3,613 8.1 3,166 3.2 1990 6,636.3 -0.5 3,898 7.9 3,132 -1.1 1991 6,653.3 0.3 4,207 7.9 3,105 -0.8 3 Heavy, light and sparkling wine. 4 Released from bond for domestic market.
§ Mrs. EwingTo ask the Chancellor of the Exchequer if he will provide details of the amount of taxation levied on Scotch whisky compared with that levied against wine for each year since 1979; and if he will make a statement.
340Wdiscuss its request for no increase in or revalorisation of the duty on spirits, and a narrowing of the duty differential between spirits and beer and wine. All these representations will be considered in the review of indirect taxation in the run-up to the Budget.
§ Mrs. EwingTo ask the Chancellor of the Exchequer what is his current estimate of the value of sales of Scotch whisky which would be lost in the event of the abolition of duty free; and if he will make a statement.
§ Sir John CopeIntra-EC duty-free sales of Scotch whisky are estimated to be worth around £50 million a year. We have no details on the value of non-EC duty-free sales of Scotch whisky. No estimates are available for the value of sales that would be lost in the event of abolition of duty-free sales.
§ Mrs. EwingTo ask the Chancellor of the Exchequer if he will provide details of(a) the amount and (b) the value of sales of (i) Scotch whisky and (ii) imported wine in cash and real terms in the United Kingdom for each year since 1979; and if he will list the percentage increase/decrease compared with the previous year.
§ Sir John CopeSuch information as is available is given in the table. The figures for whisky relate to home-produced mature whisky and whiskey. For wine, the figures relate to heavy, light and sparkling wine, the bulk of which is imported.
§ Sir John CopeFirm data on duty receipts are only available for total spirits. Estimates can be made for all home-produced whisky and these are given in the table.
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£ millions Estimated duty and consequential VAT on whisky/whiskey Duty and consequential VAT on wines 1979–80 647 417 1980–81 664 449 1981–82 717 581 1982–83 549 582 1983–84 941 716 1984–85 679 745 1985–86 822 789 1986–87 767 801 1987–88 803 843 1988–89 784 902 1989–90 748 910 1990–91 835 984 1991–92 856 1,084
§ Mrs. EwingTo ask the Chancellor of the Exchequer if he will show how the rate at which Scotch whisky is taxed has varied compared with the rate at which wine is taxed from 1979 to date; and if he will make a statement.
§ Sir John CopeThe information is as follows:—
Percentage change in duty rate Year Whisky Wine of fresh grape 5.5 per cent. to not ex-ceeding 15 per cent. Strength 1979 0.0 0.0 1980 13.7 0.0 1981 14.6 16.9 1982 6.4 12.2 1983 5.0 5.8 1984 1.9 1—19.9 1985 1.9 8.3 1986 0.0 0.0 1987 0.0 0.0 1988 0.0 4.5 1989 0.0 0.0 1990 10.0 7.7 1991 9.3 9.3 1992 4.5 4.5 1 Due to duty restructuring
§ Mrs. EwingTo ask the Chancellor of the Exchequer what is the level of duty on a bottle of Scotch whisky in each of the EC member states; and if he will make a statement.
§ Sir John CopeOur latest information is for November 1992 and is as follows:
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Excise duty on a 70c1 bottle of Scotch whisky Member state National currency Cost per 70cl Sterling Duty per 70cl Belgium 178.00 3.50 Denmark 102.77 10.77 France 21.85 2.62 Germany 7.13 2.89 Greece 388.22 1.22 Ireland 5.63 5.98 Italy 2,603.32 1.20 Luxembourg 106.29 2.09 Netherlands 8.90 3.20 Portugal 335.82 1.53 Spain 203.00 1.17 United Kingdom 5.55 5.55 Notes:
1. Calculated using exchange rates as at 1 October 1992.
2. In most cases VAT is also charged at the standard rate applicable in each member state.
§ Mrs. EwingTo ask the Chancellor of the Exchequer if he will publish the annual amount of revenue accruing to the Exchequer in(a) cash and (b) real terms from the levying of excise duty on Scotch whisky for each year since 1979.
§ Sir John CopeFirm data on duty receipts are available only for total spirits. Estimates can be made for all home-produced whisky and these are given in the table:
£ million Estimated duty and consequential VAT on whisky/whiskey In real terms at 1991–92 prices 1979–80 647 1,475 1980–81 664 1,301 1981–82 717 1,259 1982–83 549 901 1983–84 941 1,476 1984–85 679 1,014 1985–86 822 1,158 1986–87 767 1,047 1987–88 803 1,055 1988–89 784 971 1989–90 748 859 1990–91 835 875 1991–92 856 856