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<p>At Autumn Budget 2021, the Chancellor announced a number of reforms to modernise
and improve the tax system for cider from February 2023.</p><p> </p><p>As part of
this, the Government intends to move to a taxation system which taxes cider on the
basis of its alcohol content. This will result in higher strength ciders – which are
currently undertaxed – paying duty in proportion to strength. The Treasury considers
the impact this will have on business decision-making difficult to estimate, as different
businesses will have different business models. We will continue to engage with industry
as our review progresses and value feedback on this point.</p><p> </p><p>Regarding
flavoured ciders, the Government has decided to keep the existing cider category and
its substantially lower rate to remain focused on traditional cider, recognising the
part cider producers play in local economies and the cultural value attached to cider.
Therefore, there are no plans to equalise flavoured and non-flavoured cider duty rates
at this stage.</p><p> </p><p>Further detail about the impact of our alcohol duty reforms
on cidermakers, including breweries that produce cider, will be included in a tax
information and impact note when the policy is final, or near final, in the usual
way.</p>
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