THE Scotch whisky industry has warned that high levels of taxation are holding back one of the country’s most important sectors as it prepares for the challenges brought by Brexit.

Trade body the Scotch Whisky Association (SWA) wants the UK Government to slash to so-called ‘Scotch Supertax’ in its Autumn Budget, branding as “onerous” the near-80 per cent tax burden that the industry faces. It said that, per unit of alcohol, whisky is taxed 51 per cent higher than beer and 19 per cent higher than wine.

Unveiling its priorities for the next UK Parliament, the SWA also calls on Westminster politicians to help the industry boost exports, promote a competitive business environment for distillers and develop a Scotch whisky ‘sector deal’ as part of the government’s proposed industrial strategy.

Karen Betts, chief executive of the SWA, said: “Scotch whisky is an industry of huge importance to the UK, which supports over 40,000 jobs and exports more than £4 billion worth of whisky to 182 markets overseas every year.

“However, our success is not a given. So we are urging politicians at Westminster and Holyrood to work with us to deliver a Brexit that supports our future export growth and creates a more competitive domestic environment.

“As part of this, we want to see a cut to the near-80 per cent‘Scotch Supertax’. Scotch has been a highly successful great British export for many years but its treatment in its home market is damaging its ability to grow at home and to sell overseas.”