Some beer makers have been accused of reducing the alcohol content of their drinks to pay less tax, keeping prices the same and pocketing the difference
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Drinks will be taxed by alcoholic strength from 1 August when a new alcohol duty regime comes into effect.Under the new tax system, producers will save between 2p and 3p per bottle or can. Brands which have allegedly already reduced alcohol content include Spitfire, Old Speckled Hen, Foster's and Bishops Finger.
A similar move has not been ruled out by big brewers Heineken, Amstel, John Smith's and Newcastle Brown Ale. Work from the alcohol research group at the University of Sheffield said that if breweries reduced alcohol percentages by just 0.35 they could save an estimated £250m on tax.
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