SUPERMARKETS are cashing in on a new wine duty rise by sticking up to £1 on prices.
The Government’s levy has increased by 3.1 per cent — but shoppers are seeing the prices of some brands go up by seven per cent.
Supermarkets are cashing in on the rise in wine duty but hiking the prices of some bottles by as much as £1[/caption]
The new flat-rate duty — introduced this month — adds around 8p to a 75cl bottle.
But an investigation found hundreds of brands in supermarkets rose between 25p and £1.
Tesco upped prices on 70 wines, including its Orvieto Classico from £5 to £5.25 (five per cent increase).
Some went up by £1, such as Rocca Alata Amarone Della Valpolicella to £15 (seven per cent) and Faustino Gran Reserva Rioja to £17 (6.25 per cent).
Sainsbury’s has increased prices of 50 wines. Its Chilean Chardonnay is up from £7.50 to £8 (6.7 per cent) while most others have risen by around 25p, said trade magazine The Grocer.
It also upped five non-alcoholic wines from £2.75 to £3 (nine per cent) even though they are exempt from the duty.
Morrisons and Asda each put up prices for 100 wines according to the study, which compared this February to last.
Sainsbury’s has increased their prices of 50 wines while Morrisons and Asda each put up the prices of 100[/caption]
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The 2018 Budget ruled duty must rise by the inflation forecast of 3.1 per cent, taking it up 7p to £2.23. Extra VAT of 1.4p would mean a rise of 8.4p for a typical bottle.
But The Grocer said: “The ‘supers’ have passed a significant portion of the tax on to customers.”
Sainsbury’s said: “The cost of individual products is determined by a number of factors and prices can fluctuate both up and down.”
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