asked the Chancellor of the Exchequer what are the present periods permitted for the deferred payment of excise duties on wines and spirits in Belgium, Denmark, France, Luxembourg, West Germany and the United Kingdom; and if he will explain any differences.
The rules and procedures governing the payment of duty in EEC countries are complex. The following table sets out what Customs and Excise understands to be the average periods of duty deferment applying to wines and spirits.
|Belgium||2 to 6 months according to type||4 months|
|Luxembourg||2 to 6 months according to type||2 to 6 months|
|Denmark||65 days||45 days|
|France||2 months||2 months|
|West Germany||Still wines are not taxed. Aromatic and liqueur wines 3 months. Sparkling wine 40 days.||3 months|
|United Kingdom||1 month||1 month|
asked the Chancellor of the Exchequer whether, in his review of duty deferment, he will take account of the recommendations of the Food and Drink Manufacturing Economic Development Committee's report, "Scotch Whisky in the '80s"; and when he expects to complete this review.
Customs and Excise is currently reviewing the arrangements for duty deferment. It hopes to complete the review by the end of 1985. It is, however, a review of administration, and the recommendations of the NEDC report are outside its scope. These recommendations were carefully considered by my right hon. Friend in his review of taxation before his last Budget, and it was decided to make no alteration to the periods of duty deferment allowed for alcoholic drinks
asked the Chancellor of the Exchequer what is the estimated cost of increasing the duty deferment period for wines and spirits by two weeks, four weeks and six weeks, respectively.
There would be a once-for-all loss of revenue in the financial year in which the change was introduced. This would be about £185 million for an additional period of deferment of either two or four weeks, because one month's payments will be deferred to the following financial year; and about £370 million for an additional six weeks, because two months' payments would be deferred to the following financial year. There would also be associated borrowing costs.
asked the Chancellor of the Exchequer what are the estimated receipts in 1984–85 and 1985–86 from duties on spirits, beer, wine, made-wine, cider and perry, respectively; and if he will explain any differences.
The estimates are as follows:
|1984–85*£ million||1985–86†£ million|
|Cider and perry||45||60|
* Latest estimates.
Estimates of increased receipts in 1985–86 result from the increased rates of duty announced in the Budget and forecasts of growth in the economy.