‘Below Cost’ Alcohol to be Banned in the UK
January 19
08:20
2011
UK retailers will be banned from selling alcohol below the rate of duty plus VAT, under new plans announced by the Government. The plans will effectively introduce a minimum price for alcohol, helping to crack down on cheap alcohol which is blamed for a great deal of crime.
The rate of duty on a standard 440ml can of 4.2% lager is 33p. Combined with VAT of 5p, the total of duty plus VAT comes to 38p. So, under the new plans, a can of lager could not be sold for less than 38p.
Minumum prices for other alcoholic drinks will include:
* 1 litre of vodka – £10.71
* 1 litre of cider – 40p
* 700ml of whiskey – £8.00
* 750ml bottle of wine – £2.03.
Options for how the ban will work are currently being considered.
