Alcohol tax policy ‘unsustainable’
Monday 28th November 2011, 3:00PM GMT.
Liberation Group chief executive Mark Crowther
THE boss of the Island’s biggest drinks business has written to all States Members to warn that it would be a ‘social and fiscal mistake’ to continue the current policy of continually raising duty on alcohol.
Liberation Group chief executive Mark Crowther is hoping the new batch of politicians will introduce fairer taxation policies and reduce the burden of regulation on the drinks industry.
He contends that when an additional 5% in duty comes into force in January next year, the Island will have one of the highest duty rates in Europe.
‘These increasing rates penalise pubs, responsible drinkers and important local industries,’ he said.
In the letter he said that in the past ten years, beer duty collected had more than doubled while beer volumes had declined by over 20%.
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Surely the states would be better off lowering duty, then more people would drink more thus raising taxes more. We can deal with the problems of alcohol dependency, scirrhosis of the liver, domestic violence and mass brawls in town with the new taxes!
Mr Crowther is only interested in profit and not the long term damage his product does to the community and island.
Let him clear up the p!ss, blood and sick on a Sunday morning, repair the broken windows and homes. Why not reduce the duty but raise the tax rate for pub groups to 75% of profits?
For years Dave Le Quesne has been defending the out of line rises of the cost of a pint vs duty with ‘importation’ costs, dsitribution costs, price of barley/wheat etc… 2P duty does not equal 5p on a pint.. fleecing us as usual.
Stop closing local pubs and forcing us into your little garrishly lit toilets of bars, all halogen lamps and chrome, alcopops and ‘shots’ and you may get more punters through the door.
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ah, the poor publicans, my food bill went up too.
the cost of a night out now beyond our reach.
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Hmm, strip away the duty and let’s see the real story. While it could be argued that it is more expensive to run a business in Jersey, I am sure we will find that the margins being made in Jersey by the pubs is significantly higher than in the UK and especially on locally brewed ales.
The problem is that when you have an asset stripped business owned by venture capitalists, long term viability is sacrificed for short term profitability and this is exactly the case here.
Sorry Liberation Group, but you need to cut your margins. Not every rise need be passed on to the consumer. Perhaps volumes would not have declined so much if you had taken this approach?
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Self interest
Self interest
We have to pay for the medical and police cost of his business.
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Can anyone tell me what the duty levels are in Jersey compared to the UK. Every time I look at the Duty here I,m almost sure its less than the UK (unless I,m taking in to consideration VAT, which is still a Tax).
Mr. Crowther doesn,t appear to me to running a competitive industry, or his Tennants aren,t. Profit margins on booze here compared to the UK are huge. I had a pint of Lager in my home town last week, in a Sports Bar, @ £2.10 – and they have 20% VAT there. Liberation Group and their Manager.s / Tennants are making a living on two nights trading per week. If they can do that, which it appears they can or pubs would be closing all over the place in Jersey, then that must surely be down to inflated profits!
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Perhaps Mr Crowther would like to tell us the cost of importing a keg of Carling and then tell us how much he sells it to his tied houses for…
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Shouldn’t keep letting hospoitality businesses become more flats…Then in the old days of more tourists the booze was cheaper and the states made more money.
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If Alcohol was invented today it would be a Class A drug..
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100% agree
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Maybe different duty for different drinks by ABV?
A pint of low alcohol beer less than 3% a.b.v should have less duty than Stella. A litre of spirits at 40% a higher rate.
It would certainly stop the kids drinking alcopops/spirits. And probably stop them drinking altogether – low alcohol warm beer for fifteen year olds… LMAO.
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I was paying £1.80 a pint in my local Wetherspoons, £3.50 a pint, I can get 7.5 pints of Stella for £8.99 at my local Checkers Express. Shame they wouldn’t let Wetherspoons in, cheap food and booze pubs as they should be.
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Currently the tax on a pint of normal pub beer ( under 4.9% ) is 30p and this will rise by about 1.5p in January so for most pubs it is less than ten percent of the cost of a pint and in some cases a lot less plus there is GST at 5% or around 15 -20p per pint. Let us say 50p in all.
http://www.gov.je/SiteCollectionDocuments/Industry%20and%20finance/ID%202011%20REVENUE%20RATES%2020110101%20JL.pdf
The corresponding UK rate would be 47p per pint on a 4.5% ABV beer and there would be 20% VAT as well say 60 – 70p per pint. Let say 107p per pint or over twice as much!
http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD1_031160
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But its the shipping charges I guess ….AGAIN!!but if these costs are so high why are so many LVCR items sent from the islands…..
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It matters not to me as I gave up going to the Pub several years ago, Could not pay a mortgage and the silly prices that a pint of beer had claimed to.
But the effect of this continuous rise in price along with the tax on fags can be seen in the destruction of tourism not the only reason, A ex Senator helped that along happily with his we don’t want the bucket and spade crowd hear any more trying to justify the high cost of the UK ferry service, They obliged and all went to a far cheaper Spain and we pump in millions every year try to attract them back.
Sounds like Jersey to me only problem we are now having to live in the real world who want to shut places like this down and will do so bit by bit, And we have nothing to replace finance.
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I took out a mortgage and bought a pint,
It tasted just fine as well it might,
Maybe another I quietly mused,
You have to be joking I feel confused
Why a pint costs so much in this fine isle,
In England we can get pissed in style,
Hard to afford a taxi to get back home,
Just one pint and you’ll walk home alone.
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