The UK government has implemented a new wine duty system as of February 2024, transitioning from a volume-based calculation to one based on alcohol by volume (ABV). This shift complicates pricing, as it introduces over 100 tax rates instead of just three. The Wine and Spirits Trade Association estimates that around 43% of wines will see price increases due to this change, especially higher ABV red wines. Additionally, the new duty fails to account for climatic variations that affect a wine's ABV and poses challenges for producers adhering to strict classification rules.
The new wine duty, effective as of February 1, 2024, calculates taxes based on alcohol by volume rather than volume, complicating pricing and affecting wine producers.
There are significant issues with the new duty system, which overlooks the complexities of wine as an agricultural product, making it challenging for producers and consumers.
Due to the new duties, prices for wines are expected to rise, with the Wine and Spirits Trade Association predicting about a 43% increase across the board.
Many classified wines cannot adjust their ABV due to stylistic standards, raising concerns over pricing and the future of reasonable wine affordability.
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