Farming Minister backs 'cider tax'
THE cider industry is still benefiting from significantly lower rates of duty than its main competitor, Farming Minister Jim Fitzpatrick has said in response criticism of the new ‘cider tax’.
Mr Fitzpatrick was forced to defend the controversial decision to raise the duty on cider by 10 per cent above inflation when the issue was raised in the Commons during Defra Questions.
Alistair Darling’s announcement in Wednesday’s Budget, which has provoked a furious response from cider makers and drinkers, has also upset some MPs.
Conservative MP Bill Wiggin, representing the cider-rich constituency of Leominster, in Herefordshire, accused the Minister of hypocrisy on Thursday when he praised British farming while representing a Government happy to tax cider makers so heavily.
“How has the Minister got the nerve to tell the House all those nice things about agriculture when yesterday, on the same spot, the Chancellor increased duty on cider by 10 per cent over inflation?” Mr Wiggin said.
“There are 600 businesses in Herefordshire alone producing this exclusively British drink. How will the Minister ever persuade anyone to take anything he says about British agriculture seriously again?”
Mr Fitzpatrick said he recognised Mr Wiggin’s concerns about the industry in his constituency.
But he said that, historically, cider producers have paid lower rates of duty than other producers. The new rate will still be about half that paid on beer, he said.
He said the smallest UK cider producers would remain exempt from the duty increase, which applies only to makers who produce more than 7,000 litres a year
“We estimate that, as a result, nearly 400 UK cider makers will not be affected by any of the changes announced yesterday,” he said.
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Readers' comments (1)
nicky williams | 28 March 2010 8:17 pm
RE cider tax , lets be honest , the reason the cider had 10% tax at the recent budget is because lots of people drink it , its available at the supermarkets at about the equivalent of 50 [ish ] pence per can ,just another stealth tax
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