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Author Topic: How much of the price of a bottle of wine is tax?  (Read 1188 times)

Offline P-Kasso2

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How much of the price of a bottle of wine is tax?
« on: 27 March, 2017, 04:24:47 PM »
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Someone told me over a glass of wine that, if you bought a 3 bottle of wine, the wine bit was only worth about 20 pence! And the rest is all tax and overheads! If it's true, it's enough to make one join the AA.

So how does the price of a typical bottle of wine, or a nice cold pint of beer, actually break down? How much (or how little) does the actual wine or beer represent?
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Offline siasl

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Re: How much of the price of a bottle of wine is tax?
« Reply #1 on: 28 March, 2017, 01:23:50 PM »
Here are the taxation rates for all booze, not including the VAT.

If you bought a 3, 0.75litre bottle of wine/vinegar, which includes VAT, then it would cost 2.50 + VAT. As of March this year, excise duty is 2.16 per 75cl, so you get 34p for the actual bottle and grape juice.

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Re: How much of the price of a bottle of wine is tax?
« Reply #2 on: 29 March, 2017, 09:58:38 AM »

A 3 bottle of wine contains just 35p's worth of wine? How dreadful is that?
At least that's better than the 20- I was told.

Still, reading the good link you gave, Siasl, I suppose it means that were I to go mad and pay 3 times as much and buy a 9 bottle of wine...the Excise Duty would still be the same 2.16 + Vat.

Which means I'd be getting many times more than three times 35p's of wine...I'd be getting over a fiver's worth of wine. That'd mean "Pay six quid more and get about 6-worth of wine". Or about 17 times that 35p. A bottle of 35p wine really doesn't sound too healthy, whereas a six quid amount of wine does.

So, if I rush out and buy a 12-litre bottle of Chateau Margaux 2009 at 122,380 a bottle, that'd save me....
« Last Edit: 29 March, 2017, 10:01:16 AM by P-Kasso2 »
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Offline siasl

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Re: How much of the price of a bottle of wine is tax?
« Reply #3 on: 29 March, 2017, 10:19:43 AM »

A 3 bottle of wine contains just 35p's worth of wine? How dreadful is that?
At least that's better than the 20- I was told....
Nope, the 35p includes the cost of the bottle...

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Re: How much of the price of a bottle of wine is tax?
« Reply #4 on: 29 March, 2017, 10:37:21 AM »

A 3 bottle of wine contains just 35p's worth of wine? How dreadful is that?
At least that's better than the 20- I was told....
Nope, the 35p includes the cost of the bottle...

...and the supermarket's profit margin which'll be at least half of that 35p...mebbe more - and transport costs, and bottling factory overheads, and printing all those fancy wine labels ain't cheap either. Methinks it's time I bought myself a home brew kit and a carboy or three. Or a bootleg whisky still! Wonder what the VAT on that is...
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Offline siasl

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Re: How much of the price of a bottle of wine is tax?
« Reply #5 on: 29 March, 2017, 10:55:22 AM »
...and the supermarket's profit margin which'll be at least half of that 35p...mebbe more - and transport costs, and bottling factory overheads, and printing all those fancy wine labels ain't cheap either. Methinks it's time I bought myself a home brew kit and a carboy or three. Or a bootleg whisky still! Wonder what the VAT on that is...

The selling price is always 20% more from VAT. I think you mean the excise duty which is 7.54 per 70cl.

Unfortunately, while brewing your own is perfectly legal, distilling your own is perfectly illegal :)