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Redress Irresponsible Tax On Wine - Newsroom - 06-16-2010

Low alcohol industry says emergency budget is opportunity to give people a reason to drink responsibly.

The Chancellor’s emergency budget is in danger of encouraging people to drink wine with higher levels of alcohol and ignore the less alcoholic
brands.

According to a leading wine industry expert, this month’s budget provides George Osborne with an opportunity to significantly reduce Britain’s
consumption of alcohol – particularly among middle class wine drinkers - and encourage people to drink more responsibly.

That’s according to Tony Dann, a long-time campaigner for low-level alcohol wine consumption and Chairman of Sovio Wines. His company’s analysis of
current UK taxation on alcohol highlights an imbalance in the way wine is taxed.

“The current system allows tax on a unit of alcohol to be lower in wines which have a higher overall alcohol content,” says Dann.

“For example, 7% abv wine is charged twice as much duty per unit of alcohol as 14% abv wine.

“This means under the existing tax regime, there is no financial incentive for consumers to buy lower alcohol wine.”

Dann says any plans by the Chancellor to change tax on alcoholic drinks in his budget presents a huge opportunity to raise revenue and create a more
responsible drinking culture in this country.

Dann is writing to the Chancellor urging him introduce a fairer system of tax on alcohol allowing Brits the opportunity to pay less for lower-alcohol
wine.

According to Dann, although excessive consumption of alcohol is a problem in the UK there are many people who live in a wine drinking culture who are
demanding their favourite wines but with lower alcohol content. The levels of alcohol in wine has been steadily increasing for the past three decades.

Dann says it is all about finding ways to make levels increase choice not diminish it.

“Most people do not change their behaviour because they are told it’s good for them,” says Dann. “They need an incentive, and here’s a golden
opportunity for the government to provide that incentive by altering tax levels in favour at low-alcohol options.”

Sovio Wines produces a full flavoured, reduced alcohol lighter style wine and its best seller, which is available through the Tesco supermarket
chain, is Sovio Sparkling White Zinfandel, a 5.5% abv wine which does in fact benefit from a duty break.

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