HC Deb 18 June 1998 vol 314 c275W
Mr. Nigel Jones

To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues of a reduction in beer duty of 10 per cent. [46047]

Dawn Primarolo

HM Customs and Excise estimate of the revenue lost to the Exchequer in a full year through a 10 per cent. reduction in the level of excise duty for beer is £335 million.

Mr. Hoyle

To ask the Chancellor of the Exchequer if he will estimate the effect on revenues of each 10 per cent. reduction of tax on wine, beers and spirits. [45958]

Dawn Primarolo

[holding answer 15 June 1998]HM Customs and Excise estimate of the revenue lost to the Exchequer in a full year through a 10 per cent. reduction in the level of excise duty for each of the product types set out is as follows:

  • Wine: £110 million
  • Beers: £335 million
  • Spirits: £80 million.

Mr. Hoyle

To ask the Chancellor of the Exchequer what plans has he made to equalise the tax on wines and spirits following the abolition of duty free. [45956]

Dawn Primarolo

[holding answer 15 June 1998]The Chancellor keeps duty rates under regular review. The abolition of intra-EU duty free sales from 30 June 1999 is unlikely to raise any new policy considerations.

Mr. Hoyle

To ask the Chancellor of the Exchequer what estimate he has made of the duty lost through smuggling of wines and spirits from the Continent to United Kingdom in the last year for which figures are available. [45957]

Dawn Primarolo

[holding answer 15 June 1998]:HM Customs and Excise estimate of the revenue lost to the Exchequer through cross-channel smuggling of wines and spirits in 1997 is set out in the table.

£ million
Product type Excise duty VAT Total
Wines 35 15 50
Spirits 20 5 25

Notes:

  1. 1. Figures have been independently rounded to £5 million
  2. 2. Figures for estimates revenue losses use Customs assumptions that 70-80 per cent. of smuggled alcoholic drinks substitute for similar purchases in the UK.

The above estimates exclude any amounts for revenue lost on wines and spirits involved in commercial fraud or smuggling in freight consignments. There are no official estimates for the extent of these activities.