Alcohol Taxes in the United Kingdom to Freeze Again February 2023

Taxes fund the local and national government and help to benefit road building, public schools, free healthcare, and other government programs. But what happens when there is a tax freeze on a product? 

While the United Kingdom may lose some money during the one-year alcohol tax freeze happening in 2023, liquor stores and customers can benefit during that small time frame by keeping more money in their pockets. When will the tax freeze start this year? Find out below! 

The tax free benefits will begin February 2023. In the meantime, head on over to betFIRST to find your favorite casino platform where you can play your favorite games. Some casino platforms also have a sportsbook option where you can place wagers during major sports events for a chance to win real money.  

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How Long Will the Freeze on Alcohol Taxes Last? 

Kwasi Kwarteng, a member of the British Conservative Party, proposed that alcohol taxes would freeze for the United Kingdom between February 2023 to August 2023 as an avenue for expediting economic growth in the nation. Jeremy Hunt originally reversed the freeze on alcohol taxes in October 2022 when he became the finance minister after Kwarteng’s time in office for that position.  

What Are the Tradeoffs of the Alcohol Tax Freeze? 

Back when the alcohol tax freeze was reversed in October 2022, it had cost the nation about 600 million pounds or $730 million. While the United Kingdom may lose more money by not collecting alcohol taxes with the new freeze from February 1, 2023-February 2024, it will assist small businesses that are experiencing high rates of inflation costs already.  

Think of the extra money that small businesses have to pay for electricity, building rent, and product supply costs. Consider the rising credit card charge rates for customers that are purchasing liquor with a debit or credit card.  

Consumers also experience taxation on their end at the checkout counter when they want to purchase their favorite liquor. At least for the six-month tax freeze duration, customers can save on their favorite alcoholic beverages without having to pay taxes on them.  

Since liquor stores do not have to impose taxes on alcohol thanks to the tax freeze, more customers would be willing to shop for the beverage, even if they are purchasing a lower-priced alternative if they are on a budget. More customers at local liquor stores mean that small businesses are benefiting from enhanced sales and a spike in customer engagement.  

What Will the Alcohol Tax Be Like After the Freeze Is Over? 

Jeremy Hunt is expected to announce details about the first annual budget for the United Kingdom on March 15, 2023. During this announcement, he will outline the rate of taxation for alcohol taxes that liquor stores and consumers will have to pay going forward after the tax freeze is over in February 2024. 

No information about the new tax rates effective post-alcohol tax freeze has been discussed further just yet. Hence, people will have to wait until this announcement on March 15th to find out more information.  

Conclusion 

Do you agree with the United Kingdom tax freeze that is going to be taking place over the next year? How do you feel about not having to pay taxes on alcohol for an entire year? Weigh in with your opinion in the comments section below, especially if you are a regular recreational drinker who has seen the rise and fall of overall prices and taxes in the industry.