MPs fight for lower tax on wine

A GROUP of MPs has vowed to fight to reduce the huge taxes on buying wine in this country.

The message from the All-Party Parliamentary Wine Group came after a visit to Tenterden vineyard where they toured the vines and watched wine-making.

Managing director of Tenterden's New Wave Wines, Frazer Thompson, said that changes had to be made to ensure the growth of the industry.

"Every year we write out a cheque for £450,000 to the tax man when we are just about breaking even. If the taxes could be reduced we could invest so much more in our business. It would stimulate more jobs and growth in an industry that fits what people want."

The main concern from the visitors was that the high taxes-£1.75 for a £4 bottle of wine-were pushing people to shop abroad. Director of the Wine and Spirit Association, Quentin Rappoport, said taxes on sparkling wine were "colossal" and said too many consumers made their way to Calais to shop for wine.

"A lot of the taxes are outdated and it is making people go to Calais," he said. "There is only a 2p tax on wine in France and 4p for sparkling wine."

Parliamentary group chairman Geoffrey Clifton-Brown, MP for the Cotswolds, said he would fight to bring about change.

"Having got this level of interest there is going to be a huge lobbying power to the government to say the taxes are not fair.

"We have got to work over a period of time to get things equalised. We must lobby for fairer treatment on tax."

Wine producers hope the campaign will be successful because the Government has already agreed to lower taxes for small breweries. The Parliamentary group was set up in February, sponsored by the WSA, and 22 of its members joined the visit to Tenterden Vineyard following a briefing on UK wine trade issues.

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