Deputies aim to lift local spirits

If successful, the special rate would apply to independent firms who distill less 20,000 litres of alcohol per year, and would replicate the discount already available to small, local breweries. 

“The duty rate would be 50% of the current duty rate, which is in line with the discount applied for independent small breweries and independent small cider-makers,” said the two deputies. “At an ABV of 40%, a litre of spirits would attract duty at £15.96 (full rate) or £7.98 (lower rate).”

Deputies Vermeulen and Moakes, who have to provide the financial implications of their amendment, say the worst-case scenario is £2.1m less-than-budgeted revenue to States coffers in 2021. They are however optimistic that the substantial cost of the changes would be far less. 

“It is not possible to calculate the cost of this amendment as it is not known which of the current distillers who supply the Bailiwick would qualify for the lower rate,” their amendment states.

“However, the budgeted income for 2021 from Excise Duty on Spirits is £4.2m, so the potential maximum reduction revenues would be 50% – £2.1m. If 10% of the current volume of spirits qualified for the lower rate, there would be a reduction in revenues of approximately £200,000 per annum.”