The Cider Tax Rules


by Unity    
March 25, 2010 at 8:40 am

Just about the most immediately contentious announcement in yesterday’s budget was the decision to increase the rates of alcohol duty levied on cider by a whopping 10% over and above the inflation rate of 3% used as the basis for other rises in excise duties.

Within what seemed to be a matter of minutes of the announcement, the provisional wing of the Wurzel’s Appreciation Society had a Facebook group up and running while I understand that in Hereford, today, the SAS have been placed on stand-by in case it becomes necessary to protect the Bulmer’s factory from a rampaging mob of anonymous protesters, all wearing Justin Lee Collins masks. Rumours also suggest that a bomb threat may have been issued to the Burnham-on-Sea branch of Oddbins by a group calling itself the People’s Front of Somerset*, prompting the Home Office to raise the terrorist threat level in Minehead to ‘who gives a fuck, Butlins doesn’t open for another fortnight’.

(Or was that the Somerset People’s Front? Hell, I dunno, might have been the People’s Popular Front of Somerset for all I give a toss!)

Truly, the End of Days is upon us all, but do cider drinkers really have any cause for complaint?

Or is this just another lame excuse for me knocking up a graph…

Ah, yes, you guessed it – it’s the graph!

So, what you have there is a graph showing the changes in alcohol duty rates for beers/lagers and ciders since 1993, with the rate given in terms of the amount of duty levied per litre*.

*Interfering bloody foreigners – what’s wrong with pints?

The red lines on the graph show the amount of duty levied on beers and lagers, and as the duty on these is levied at a fixed cost per percentage of alcohol by volume (ABV), I’ve chosen to illustrate the relevant trends using three fairly typical types of lager*:-

- The dotted red line is for a litre of 3% ABV lager (supermarket pisswater),

- The dashed red line is for a litre of 5% ABV lager (a drinkable Premium lager such as Stella), and;

- The solid red line is for a litre of 9% ABV lager (liquid headfuck such as Tennants Super)

*Why lager? Because people who drink real ale are a) adults, and b) have a much higher IQ and don’t need me to draw them a diagram to tell them how much tax they’re coughing up every time they buy a pint.

For ciders, alcohol is duty is levied according to which one of three fixed rate band the Cidar falls into:-

- The dotted green line is for a litre of still cider with anything from 1.2% to 7.5% ABV, which covers the vast majority of commerically available ciders.

- The dashed green line is for a litre of still cider with between 7.5% and 8.5% ABV, i.e. the White Lightning rate, and;

- The solid green line is for sparkling ciders with between 5.5% and 8.5% ABV.

To clarify the distinction here, sparkling ciders are carbonated and sold in bottles as a champagne substitute to people who wouldn’t dream of paying through the nose for any of that poncey foreign rubbish, especially if its been trodden on  by the French. I mean how do you know they’ve washed their feet first? Have you seen the state of their public toilets?

The fizzy crap that you get in pubs is, despite appearances to the contrary, classed as still cider.

And as you can see, even with yesterday’s 13% increase in duty on cider, teenagers can still get completely shitfaced in your local park on the White Lightning they bought from the local corner off-licence, keeping at least some of the money in the local community, without coughing up any more taxto central government,  per litre, than they would by getting their mate’s older brother to pick them up a case of 30p a tin supermarket piss-water.

You see, that Alistair Darling is a clever bloke after all – the increase in duty on cider won’t price teenagers out of the market but it will raise a bit more of the tax needed to pay for all those smart orange jackets that the kids get given to wear while they’re cleaning up the mess they’ve made in the local park.

So its really all just a clever job creation scheme for teenagers.

Now what’s not to like about that.


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About the author
'Unity' is a regular contributor to Liberal Conspiracy. He also blogs at Ministry of Truth.
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Reader comments


Obvious bit of whataboutery that I must nonetheless mention: The 8.5%ABV cider I favour isn’t of the ‘White Lightning’ variety (owned by Heineken), but from companies such as Butcombe, Westons, and Thatchers (all based in the UK).

Is it not politically counter-productive to place locally produced scrumpy in the same tax bracket as imported wines?

I also would like to suggest that if Londoners drank Old Rosie instead of all that mud-water ale then they wouldn’t be so grumpy and stressed out.

Actually, I should put some clear figures to yesterday’s rises.

For beers and lagers, the 5% hike amounts to a 0.8p rise in duty per 1% ABV per litre, to which you also have to add VAT, which give a rise of near enough 1p per 1% ABV.

For ciders, duty on standard still cider is up by 4.1p per litre, so about 5p per litre when VAT goes on, which strong still cider going up by 6.2 per litre – about 7.5p with VAT

Gwyn:

Although not shown, to keep things simple, its worth pointing out that the figures given for beers and lagers are for the mass produced products.

Small brewers and micro-breweries are actually taxed at a lower rate depending on scale of output – IIRC, there are three different bands depending on the number of hectolitres of beer produced annually.

I would be more than happy to see the Treasury operate a similar scheme for locally produced traditional scrumpy, having had many a good night (and lousy morning after) on Old Rosie.

Trouble is that good cider around here is already more expensive than a good ale, I think that’s what’s so galling about the rise is that it’s not as if it was particularly cheap anyway (excluding supermarket white lightning, ofc).

4. Good point.

*Why lager? Because people who drink real ale are a) adults, and b) have a much higher IQ and don’t need me to draw them a diagram to tell them how much tax they’re coughing up every time they buy a pint.

Home Office to raise the terrorist threat level in Minehead to ‘who gives a fuck, Butlins doesn’t open for another fortnight’

brilliant!

8. Shatterface

As I mentioned on another thread, this doesn’t just effect cider drinkers, it effects those who have mates who drink cider and who buy drinks in rounds.

It’s a tax on sociability.

I thought the left were meant to stand up for the poor?

1) People drink alcohol because they enjoy the effect it has on them.

2) Alcoholic drinks vary widely in terms of the the price per unit.

3) If those on low and fixed incomes want to be able to drink alcohol they have to buy it as cheaply as possible.

4) Strong cider represents the drink with the lowest price per unit currently available.

5) The relatively huge increase in cider tax will fall hardest on the poorest drinkers- the people the left are supposed to represent.

Apologies if I’m wrong but I thought I detected a whiff of the Islington barbecue in this post (where, in my experience, Diamond White is never on the table). Anyway leftists should not be supporting policy that attacks the least well off.

Moreover, there is a campaign being conducted by the fake charities to get a minimum price for alcohol and it is clear to me that this tax increase is the first salami slice along that road. As liberals, we should be telling the government to stop listening to the unelected authoritarian busybodies who want ever more legislation to impose what they believe to be in our interests.

Ultimately, cider tax is about the state trying to micro manage lives

Pagar:

There are days when you take things a little too seriously and miss the punchline…

You see, that Alistair Darling is a clever bloke after all – the increase in duty on cider won’t price teenagers out of the market but it will raise a bit more of the tax needed to pay for all those smart orange jackets that the kids get given to wear while they’re cleaning up the mess they’ve made in the local park.

So its really all just a clever job creation scheme for teenagers.

There are days when you take things a little too seriously and miss the punchline…

OK agreed. I was aware your tongue was fairly adjacent to your cheek.

Nevertheless minimum pricing is on its way which, for all non-recovering alcoholics throughout the country, is very bad news indeed.

Except for

http://www.wine-making-guides.com/rice_saki_wine.html

Outstanding taste, knocks your head off and almost free.

9
‘I thought the left were meant to stand up for the poor?’ – well yes they are,but it was the government who imposed this tax and they are not left.

The tax on cider is the government sending a message to the voters that teenage binge drinking will be addressed, as Unity has already suggested, although I believe it will be problematic for small producers.

I am not, in principle, against taxations to cover the cost of externalities which classical liberals/libertarians never seem to factor into their simplistic market model.

I don’t suppose you live around a city/town centre where avoiding vomit on Saturday and Sunday morning has become an art-form.

I suggest a LibCon meet at the Coronation Tap pub where rich and poor can all get smashed on Exhibition together one last time.

@12, the point is, the people who’re drinking strong cider for 60p a litre are not the people who’re starting fights and throwing up in town centres on Friday and Saturday night. The binge-drinking-pub-fighting group are largely young, employed people with relatively high disposable incomes (because they live at home or in flatshares, no kids, no mortgage, etc) who’re happy to spend gbp150 on booze, a few lines of coke, cab fares, etc. The strong cider drinkers are a) tramps and b) young kids who wouldn’t be allowed anywhere near a club on a Friday or Saturday and couldn’t afford to go even if they were.

My question on Unity’s chart is why the bloody hell don’t we just tax alcohol volumes? We could continue to have some exceptions for small artisanal producers if we wanted to, but in general wouldn’t it make sense to have the same tax on consuming 20ml of pure alcohol whether you take it as a double shot of vodka, as a half-pint of Duvel, or as a pint of Fosters?

14
Perhaps my post wasn’t clear but my comment about sending a message to the voters did not infer that I believed that increasing taxation on cider actually targetted the right group. Personally I think it’s just a PR excercise which will hit the wrong people.

FYI:

I hate cider and beer gives me gut rot as I get older, so wine is the way forward.

All hail Darling!


Reactions: Twitter, blogs
  1. Liberal Conspiracy

    The Cider Tax Rules http://bit.ly/beZCWC

  2. Ben Cooper

    RT @libcon: The Cider Tax Rules http://bit.ly/beZCWC < I laughed!

  3. leonie

    yay! My #budget fears of having to pay significantly more for cider have been relieved: RT @libcon The Cider Tax Rules http://bit.ly/beZCWC

  4. Unity

    RT @libcon: The Cider Tax Rules http://bit.ly/beZCWC – What yesterday's alcohol duty rises actually mean…

  5. Political Penguin

    RT @Unity_MoT: RT @libcon: The Cider Tax Rules http://bit.ly/beZCWC – What yesterday's alcohol duty rises actually mean…

  6. Barry Jarvis

    RT @Unity_MoT: RT @libcon: The Cider Tax Rules http://bit.ly/beZCWC – What yesterday's alcohol duty rises actually mean…

  7. movingturtle

    Increase in Cider tax won't affect cider for normal ppl. As you were cider drinkers. RT @libcon The Cider Tax Rules http://bit.ly/beZCWC

  8. Steve Glover

    RT @libcon: The Cider Tax Rules http://bit.ly/beZCWC – maybe not as bad as all that?

  9. Tom Fox

    @libcon Interesting piece on on cider tax. http://bit.ly/beZCWC . Why did you exclude sparkling cider less than or equal to 5.5% ABV?

  10. Sim-O

    RT @libcon: The Cider Tax Rules http://bit.ly/beZCWC <- It all becomes clear now

  11. uberVU - social comments

    Social comments and analytics for this post…

    This post was mentioned on Twitter by libcon: The Cider Tax Rules http://bit.ly/beZCWC...

  12. Tudor Evans

    If anyone's calling in to RadioTory5 this might be useful RT @libcon: The Cider Tax Rules http://bit.ly/beZCWC

  13. Ben Cooper

    @spiderplant88 not at all, libcon did I good post on the cider tax take a look: http://bit.ly/cc0SNu @chriswiggin

  14. Tweets that mention Liberal Conspiracy » The Cider Tax Rules -- Topsy.com

    [...] This post was mentioned on Twitter by Liberal Conspiracy, Sim-O, Tudor Evans, Political Penguin, leonie and others. leonie said: yay! My #budget fears of having to pay significantly more for cider have been relieved: RT @libcon The Cider Tax Rules http://bit.ly/beZCWC [...]

  15. Budget 2010 – some reaction « Connected Research

    [...] some cider reaction over at Liberal Conspiracy – and a petition, too, of course. Not, methinks, a move guaranteed to win much support from [...]

  16. Leon Atkins

    RT @libcon: The Cider Tax Rules http://bit.ly/axQ2RY





  • We have a tight comments policy aimed at fostering constructive debate.
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  • Abusive, sarcastic or silly comments may be deleted.
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  • Please familiarise yourself with our comments policy.

 
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