Wye Valley Brewery is a
small family-run company in Herefordshire, famous for beers such as Butty Bach,
Wye Valley Bitter and the Dorothy Goodbody range. It's in a different league
entirely from multinational tax avoiders such as Vodaphone, Google and Amazon.
I therefore found it quite bizarre to read this post by the brewery on
Facebook:
"This morning we are shocked to hear that as a relatively
small family business we pay MORE tax than Amazon UK, who have sales of £4bn.
They only paid £2.4m in tax and received government grants of £2.5m!" The
BBC news story on Amazon's taxes is here. I don't think you need to be a financial expert to get the impression that, rather than pay tax, they are in fact subsidised by us mugs, the
tax payers.
I've written about beer tax before, but usually from the drinkers'
point of view. Here is proof, if it were needed, that it's not just drinkers who are being ripped off by the tax system: breweries are as well. I
wonder whether that also applies to multinational brewing corporations that
have businesses in the country, such as Molson Coors? Call me a cynic, but
somehow I doubt it. It's only businesses that are wholly based in this country
and pay all their tax here, without the option of shipping their liabilities
around the globe to the cheapest jurisdiction, who are hammered in this way,
and our own home-grown drinks industry is hit even harder than other businesses.
One of the comments below Wye Valley's FB post says: "Can I pay for my beer in Luxembourg please?" Quite.
The BBC article doesn't make it clear exactly what the £2.5m government grants (should read TAXPAYER'S grants) are for, and why they are paid at all to a multi-billion company like Amazon.
ReplyDeleteI wondered that too.
ReplyDelete