Denmark slashes excise duty on Scotch
01/10/2003 - 10:43:07The Scottish whisky industry was drinking its good health today after Denmark slashed excise duty on the nation’s favourite tipple.
The Danes, who import €13.2m of Scotch a year, have cut the tax by 35 Kroner (€4.63) a bottle because of cheaper prices in Norway and Finland.
The Danish government has also lost out on valuable tax revenue as drinkers are allowed bring more alcohol into the country from abroad.
The Scotch Whisky Association welcomed the Danes’ 45% cut and said it was part of an EU-wide trend to lower alcohol duty.
Hugh Morrison, chief executive of the association, said: “Denmark has recognised that high taxes only lead to a disorderly spirits market, with consumers crossing the border to Germany looking for a fairer deal, resulting in the government losing valuable tax revenue.
“With Norway reducing its spirits tax in each of the last two years and the Finnish Parliament considering a proposal to cut the duty on Scotch by 44% next year, today’s tax cut is part of a welcome trend across Scandinavia towards the fairer taxation of spirit drinks.”
Mr Morrison also called on British Chancellor of the Exchequer Gordon Brown to further reform the duty on alcohol.
“In this year’s UK Budget, the British government also committed itself to ensuring a fair system of alcohol taxation,” he said.
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