Beer tax income falling as sales take downturn

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The pub trade has been warning for some time that relentless increases in tax on beer would eventually hit sales, which would in turn lower income to the Treasury.

Figures from the British Beer & Pub Association show that in the first quarter beer tax revenues were £432 million, a drop of £17 million on last year. Beer sales fell 8.2% in the past three months.

"Falling sales are hitting government duty revenues hard and must raise questions over the government's continued policy of raising beer tax," says David Long of the BBPA. Beer tax went up 9% in 2008. Another 2% rise was unveiled this week.