Section 9: Rates of Alcoholic Liquor Duty
Summary
1.Section 9 provides for increases in the rates of excise duty charged on spirits, beer, wine and made-wine, and cider, to have effect on and after 29 March 2010, and also provides for a subsequent reduction in the duty rates for certain cider products.
Details of the Section
2.Subsection (2) substitutes a new rate of excise duty for spirits in section 5 of the Alcoholic Liquor Duties Act 1979 (ALDA). The previous rate of £22.64 is replaced by £23.80.
3.Subsection (3) substitutes a new rate of excise duty for beer, other than small brewery beer, in section 36(1AA)(a) of ALDA. The previous rate of £16.47 is replaced by £17.32.
4.Subsection (4)(a) substitutes a new rate of excise duty for sparkling cider of a strength exceeding 5.5 per cent in section 62(1A)(a) of ALDA. The previous rate of £207.20 is replaced by £217.83.
5.Subsection (4)(b) substitutes a new rate of excise duty for still cider of a strength exceeding 7.5 per cent in section 62(1A)(b) of ALDA. The previous rate of £47.77 is replaced by £54.04.
6.Subsection (4)(c) substitutes a new rate of excise duty for all other ciders in section 62(1A)(c) of ALDA. The previous rate of £31.83 is replaced by £36.01.
7.Subsection (5)(a) substitutes a new rate of excise duty for still cider of a strength exceeding 7.5 per cent in section 62(1A)(b) of ALDA. The previous rate of £54.04 (inserted by subsection (4)(b) above) is replaced by £50.22.
8.Subsection (5)(b) substitutes a new rate of excise duty for all other ciders in section 62(1A)(c) of ALDA. The previous rate of £36.01 (inserted by subsection (4)(c) above) is replaced by £33.46.
9.Subsection (6) provides for the replacement of Parts 1 and 2 of the Table of rates of duty on wine and made-wine in Schedule 1 to ALDA with new Parts 1 and 2, showing the following rates of duty:
Wine or made-wine of a strength not exceeding 4 per cent: £69.32;
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent: £95.33;
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling: £225.00;
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent: £217.83;
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or more, but not exceeding 15 per cent: £288.20;
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent: £299.97; and
Wine or made-wine of a strength exceeding 22 per cent: £23.80.
10.Subsection (7) provides for the changes made by subsections (2) to (4) and (6) to come into force on 29 March 2010.
11.Subsection (8) provides for the changes made by subsection (5) to come into force on 30 June 2010.
Background Note
12.This section increases the excise duty rates on all alcoholic liquor by 2 per cent above inflation for all alcoholic drinks except for still cider and lower strength sparkling cider which will increase by 10 per cent above inflation.
13.This section also provides for the increase by 10 per cent above inflation in the duty rates on still cider and lower strength sparkling cider to be replaced on 30 June 2010 with an increase of 2 per cent above inflation from current rates (in line with that imposed on all other alcoholic drinks).
