The Scotch Whisky Association is calling on the UK Government to give more support to their industry by cutting 2% from the 80% excise duty.
It welcomed the Chancellor’s decision to scrap the alcohol duty escalator and freeze excise in last year’s Budget, but say these moves were not enough.
The SWA was speaking after a meeting with the Treasury in advance of the UK Budget on March 18 to put its case for a 2% cut in spirits duty.
The delegation discussed the pressures on the industry caused by the nearly 80% tax burden on an average bottle of scotch with Exchequer Secretary to the Treasury Priti Patel.
The meeting this week followed talks with Chief Secretary to the Treasury Danny Alexander last month.
The scotch whisky industry contributes almost £5 billion to the UK economy and supports more than 40,000 jobs but the SWA says its future growth is being stifled by the excise regime.
Supporting scotch in its home market would allow the industry to add to the £1.8bn it already spends annually on supplies, such as bottles and packaging.
The association said taxation is putting pressure on the industry in the UK and overseas.
Excise on scotch is 44%, or £2.42 a bottle higher than when the escalator was introduced in 2008.
The UK is the third largest scotch whisky market but sales in the first half of last year fell 7.3% to 35.4 million.
Exports were down 6% in volume and 11% in value in the first half of last year.
The SWA believes the tax burden in the UK encourages discrimination against Scotch in overseas markets.
SWA chief executive David Frost said: “The minister clearly understands scotch whisky’s economic importance and we welcome her interest in the industry.
“In the UK, scotch whisky is under sustained pressure from taxation.
“We hope the Government will take on board our concerns about the negative impact of this onerous tax burden.
“In last year’s Budget, the Chancellor highlighted scotch whisky as a ‘huge British success story’.
“We hope this year too he will show his support for this world-class manufacturing industry, which adds £5bn to the UK economy and £4bn net to the UK trade performance every year.”
Cutting duty by 2% for scotch whisky this year would be fair to consumers, send a powerful signal to export markets, support public finances, and most of all promote investment and jobs, he added.