I move Financial Resolution No. 3:
(1) THAT in this Resolution—
"actual alcoholic strength by volume" means the number of volumes of pure alcohol contained at a temperature of 20ºC in 100 volumes of the product at that temperature;
"% vol" means alcoholic strength by volume.
(2) THAT the duties of excise on wine and made wine imposed by paragraphs 5 (2) and 6 (2), respectively, of the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975), shall be charged, levied and paid, as on and from the 25th day of February, 1993, at the several rates specified in the Schedule to this Resolution in lieu of the several rates specified in the First Schedule to the European Communities (Customs and Excise) Regulations, 1992 (S.I. No. 394 of 1992).
(3) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
SCHEDULE
Rates of Excise Duty on Wine and Made Wine
|
Description of Wine and Made Wine |
Rate of Duty |
|
Still and Sparkling: |
|
|
Of an actual alcoholic strength by volume not exceeding 5.5% vol |
£68.00 per hectolitre |
|
Still: |
|
|
Of an actual alcoholic strength by volume exceeding 5.5% vol but not exceeding 15% vol |
£204.00 per hectolitre |
|
Of an actual alcoholic strength by volume exceeding 15% vol |
£296.00 per hectolitre |
|
Sparkling: |
|
|
Of an actual alcoholic strength by volume exceeding 5.5% vol |
£408.00 per hectolitre |
This resolution provides for the introduction of a new low duty rate for wine and made wine to apply to products which have an alcoholic strength of between 1.2 per cent and 5.5 per cent by volume. It also changes the unit of charge from litre to hectolitre to comply with EC law.
The purpose of this resolution is to introduce with effect from midnight a new low rate of excise duty for low alcohol wine and made wine products such as coolers and spritzers. The rate will apply to products which have an alcoholic strength between 1.2 per cent and 5.5 per cent. The effect of the Single Market changes on 1 January impacted adversely on coolers, spritzers and the like. Previously these drinks were charged only on the proportion of wine contained in them. However since 1 January they became liable to charge on the total liquid quantity at the full wine rate without regard to their lower alcoholic content. This has the effect of more than trebling the charge on these products. As this would effectively kill the market for such products, a new reduced duty rate is being introduced which will allow low alcohol wine and made wine products to compete on roughly equal terms with products of similar alcoholic strengths. This broadly restores these products to their pre-January position.
