Wine club fees ‘could skyrocket if Rishi Sunak pursues liquor tax increase’

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A Treasury spokesman said: “Our reforms will replace our outdated rules with a common sense approach that puts the taxation of stronger beers, wines and spirits on an equal footing, making lighter and sparkling wines more affordable. for British drinkers.

“This is on top of the alcohol tax freeze in the last three budgets, saving consumers a total of £5.7billion.”

Sparkling wine will benefit from a 25% tax reduction at still wine level, meaning a typical bottle of prosecco will be 87p cheaper.

This should benefit Britain’s growing sparkling wine sector, but many of the most popular overseas wines will be hit hard.

Wines made in warmer countries like Australia, South Africa, Chile and California are stronger because the grapes there produce more sugar, which turns into alcohol during fermentation.

93% of Australian wines will cost 58p more per bottle

A total of 93% of Australian wines, such as 19 Crimes or Yellow Tail Shiraz, will cost up to 58p more a bottle, according to industry estimates.

The ABV can vary from harvest to harvest by up to 1.5%, meaning the duty payable can fluctuate from vintage to vintage by 30p a bottle.

Still wines currently have a flat rate of £2.23 per bottle.

With 70% of wines selling between 12 and 15% ABV, the new duties will range from £2.33 to £2.91 per bottle. VAT is added additionally.

Red wines with 13% ABV will increase 35p, while 12% bottles will increase 12p and 14% up to 58p.

White wines with an ABV of 13% will go up 35 pence a bottle, according to the Wine and Spirit Trade Association.

The group warned in February that the tax hike could cost drinkers up to an extra £300m a year and wipe out the roughly £70m saved by scrapping EU red tape on wine imports after Brexit.

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