Did you know that the average beer and cider drinker pay on average £419 in tax each year? And by 2012 the government plans to increase this to £558 per year.

This is due to the government taking 33% on every pint as tax, wanting to increase this by another third by 2012.

Since cider and beer have been around, the increase in both their consumption was bound to attract the attention of the tax collectors!

Lord Wellington’s administration in 1830 ended tax on cider but it was brought back during World War 1 and lasted until 1923. Cider excise duty was then reintroduced in 1976 and remains in force now. A 47% increase in cider duty in 1984 resulted in the loss of more than 500 jobs and duty increases remain a threat to the success of cider sales even today. Current UK cider and perry duty per litre is 25.61p for most products – though there are variations, particularly for sparkling cider or perry over 5.5% ABV. Source: NACM.

As a cider maker you must register with HM Customs & Excise, you may legally produce up to 1,500 gallons per year period without paying excise duty. If you go over this threshold, then the whole quantity becomes dutiable.

Facts about Tax on Beer and Cider

  • Pub closure rate hits a record high of 52 per week. In just 1 year we have lost 2377 pubs for good.
  • Thats more than seven pubs a day closing,  with  24,000 jobs lost in the last year.
  • Government loses over £254 million in tax in last 12 months due to pubs closing

A record 52 pubs a week are now closing in Britain, leading to the loss of 24,000 jobs in the last year, according to new figures compiled by CGA Strategy, released to today by the British Beer & Pub Association (BBPA).

Currently cider and perry contributes around £370m annually, or more than £1m a day, in excise duty and VAT to the UK Exchequer.

Jennifer Ellison, Actress

Jennifer Ellison, Actress, supporting the Axe the Beer Tax campaign

Cider Industry condemns Budget Decision on Tax

The cider industry has condemned the Budget announcement to proceed with plans to raise taxes on alcohol this year. The news brings further misery to hard-pressed consumers and threatens more job losses in a sector already facing record numbers of business failures, pub closures and worsening trading conditions.

The major drinks industry trade associations warned a total of 75,000 jobs would be at risk if the plans to increase taxes further went ahead. Jobs have already been lost in our industry and the decision to go ahead with a further tax increase puts many more at risk. It’s a bitter irony that this is also bad news for taxpayers because falling alcohol sales jeopardize government revenue.

At a time when the Government is offering other industries a helping hand it is extraordinary that it wishes to harm the cider industry with further tax increases

The manifesto of the Axe the Beer Tax campaign are:

  1. To stop plans to increase beer tax by up to a third
  2. To enforce existing laws – not create new ones – to deal firmly with irresponsible drinkers and premises
  3. To end the irresponsible promotion of alcohol in supermarkets, pubs and elsewhere
  4. To trust responsible adults to make informed choices about what they drink, not punish them for the actions of an irresponsible minority
  5. To support the British pub as a vital part of social life in local communities.

Support Real Cideraxe_the_beer_tax

There are two ways of doing this:

  1. Support you can download a variety of posters and logos at axethebeertax.co.uk
  2. Sign the petition the Prime Minister to Reduce the level of taxation applied to Real Cider, Beer and Ale

2 Comments

  1. Some more facts from the CAMRA web site:

    – There is a flat rate of duty on cider up to 7.4%abv.
    – You pay on the quantity made.
    – A higher rate is paid for ciders between 7.4% and 8.5%abv.
    – A higher rate of duty is levied on cider using mushroom closures, mainly made using the champagne method.
    – A duty exempt limit of 70 hectolitres per year (about 1500 gallons) helps the very small, local producers.
    – Duty is controlled by HM Customs & Excise

  2. Garyjenkins1

    i dont believe it before the voteing i watched on sky news that the tax on cider was not goeing to go up before the budget so the mp s lied againe to get votes then took advantage of the poor men like myself who drink at home because they cant afford to go up to the pubs to drink.and i have been made redundant like many hard honest working british men around the uk.where will it all end? riots,riots,riots war?????

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