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Alcohol

From 1 December 2008, duties on alcohol will be increased.  The impact of the alcohol duty changes is shown in the table below. This does not show the offsetting impact of the reduction in VAT, which will vary between products and depending on the point of sale.

Update - 26 November 2008

The government announced on Monday that it would increase duties on tax paid on tobacco, alcohol and petrol to offset the temporary cut in VAT to 15 per cent so that prices remained broadly unchanged.

Today the government is making an order to reduce the previously announced increase in the rate for spirits from 8 percent to 4 percent, to leave spirits in broadly the same position as other alcoholic products. Excise duty payable on all other alcoholic drinks will still be increased by 8 per cent. 

Product	Excise duty including VAT at 15 per cent of the duty	Typical unit
Beer (4.2% abv)	3p	pint of beer
Wine	13p	75cl bottle
Sparkling wine	17p	75cl bottle
Cider	3p	litre
Perry	3p	litre

Tobacco

From 6pm on 24 November 2008, tobacco duty rates will be increased.  The impact of the tobacco duty changes is shown in the table below. This does not show the offsetting impact of the reduction in VAT, which will vary between products of different price.

Product	Duty	Excise duty including VAT at 15% on duty	Typical unit
Cigarettes	24 per cent of the retail price plus £112.07 per thousand cigarettes	17p	Packet of 20
Cigars	£169.74 per kilogram	5p	Packet of 5
Hand-rolling tobacco	£122.01 per kilogram	13p	25g
Other smoking tobacco and chewing tobacco	£74.63 per kilogram	8p	25g