asked the Minister for Finance the change in revenue accruing to the Exchequer that would result in 1986 from reducing excise duty on beer and spirits by (a) 2p and (b) 5p; and the changes in the volume of sales within the State he is assuming in his reply.
Written Answers. - Excise Duty on Beer and Spirits.
46.
With regard to spirits it is assumed what the Deputy has in mind is a reduction equivalent to 2p and 5p on the glass. On that basis the information requested is set out in the following table:
|
Reduction in rate of excise duty (including the additional VAT element) on |
Estimated effect on clearances for home consumption |
Estimated change in revenue in 1986* |
|
% |
£m |
|
|
Beer |
||
|
(a) 2p on the pint |
+0.3 |
–10.5 |
|
(b) 5p on the pint |
+1.2 |
–25.0 |
|
Spirits |
||
|
(a) 2p on the glass |
+0.5 |
–3.0 |
|
(b) 5p on the glass |
+1.5 |
–7.5 |
*Assuming that the reductions were introduced in the budget, with effect from 30 January 1986.