WDR points out that, after multople changes of course along the way, the Government (Home Office) has published its “Guidance on banning the sale of alcohol below the cost of duty plus VAT” with implementation day on 6 April 2014.
WDR originally launched its Duty + VAT Calculator in April 2011 to help people easily work out the floor price for the planned new Coalition regime. The WDR calculator has since been updated to include all the latest duty rates announced by Chancellor George Osborne in the March 2013 Budget, and it enables users to pick any combination of bottle or can size, packs and ABV strength. Any changes to duty that are announced in the Budget next month will be included in the calculator.
The calculator will advise what the lowest permissible retail (floor) price will be from 6 April 2014, as well as highlighting both the split of duty and VAT and also the number of units in the selected combination.
Home Office policy is that the floor price is rounded up to the nearest penny, and the WDR Duty + VAT calculator does exactly that.
| WDR originally launched its Duty + VAT Calculator in April 2011 to help people easily work out the floor price for the planned new Coalition regime. The WDR calculator has since been updated to include all the latest duty rates announced by Chancellor George Osborne in the March 2013 Budget, and it enables users to pick any combination of bottle or can size, packs and ABV strength. Any changes to duty that are announced in the Budget next month will be included in the calculator.The calculator will advise what the lowest permissible retail (floor) price will be from 6 April 2014, as well as highlighting both the split of duty and VAT and also the number of units in the selected combination.
Home Office policy is that the floor price is rounded up to the nearest penny, and the WDR Duty + VAT calculator does exactly that. Click here to access the WDR Duty + VAT calculator Tim Wilson, managing director of WDR, commented : “I am not surprised that the minimum pricing saga has taken another twist – it seems we have gone back to the original Coalition proposition of duty + VAT being the floor price, ie the consumer taxes on any given alcoholic product. “In most cases the duty + VAT floor price will be below a minimum unit price of 45p or 50p, but at least this definition of cost is simple to understand and implement, and detailed lists can be published for all alcoholic products. “If the Home Office were to try and include any other costs in this floor price, it would make the policy virtually impossible to implement. “Of course we hope that all retailers in the UK will continue to price alcohol responsibly, and that they focus more on value, choice and margin than on volume.” The Wilson Drinks Report (WDR) is a research-based business report focused on the key issues in the world of UK drinks. Published each quarter, WDR provides expert analysis, insight and commentary, supported by primary consumer research from YouGov and market data provided by Nielsen, IMRG and the IWSR. WDR is funded by subscriptions and is independent of any drinks producer, retailer or trade association.
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