§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer if he will make a statement on the relative tax rules on spirits and other alcoholic drinks in relation to units of alcohol; and what assessment he makes of revenue maximisation in determining the level of duty imposed on spirits. [32954]
380W
§ Mr. Heathcoat-Amory[holding answer 6 July 1995]: Excise duties on all alcoholic drinks are levied at specific, rather than ad valorem, rates on the end product. Duty on spirits is levied according to the litres of pure alcohol content, whereas that on beer is charged per hectolitre per cent. alcohol by volume. Cider is also taxed per hectolitre but subject to a maximum strength of less than 8.5 per cent. alcohol by volume. Duty per hectolitre on wine varies according to the nature and strength of the product: five duty bands cover a range of strengths from 1.2 per cent. up to 22 per cent. alcohol by volume and differentiate between still, sparkling and fortified wines.
My right hon. and learned Friend the Chancellor of the Exchequer takes into consideration a wide range of social, economic and health factors as well as revenue considerations when setting the level of taxation on spirits.