Taxing Measures - Since the 17th Century there have been various taxes on malt, hops and beer. The first to be applied was Customs’ Duty on imported malt. This was followed in 1644 with taxes on ale, small beer, strong beer and imported beer ranging from 4d to 1 shilling, with the resulting revenue used to fund the Civil War.

Later in 1644 a more comprehensive Act directed Lowland Maltmen and Millers to keep account of the Excise on all malt that passed through their hands. Duty was then collected by magistrates in the burghs, and by deacons and elders in country districts, with 10% of money taken earmarked for collectors expenses and for 'charitable purposes'!!! It soon became clear that such a scheme was open to abuse, and in 1647 a system of revenue farming was introduced whereby monies were collected from breweries and public houses by visiting officials.

After the declaration of Commonwealth in 1653, Scottish laws came into line with those of England and Ireland. In this year, the re-assembled Convention of Estates levied a new excise on beer with the aim of raising an 'annuitie' of 480,000 Scottish pounds should the sum of 120,000 Scottish pounds per quarter not be realised, the shortfall was to be made up through a tax of "2 merks per boll" on all malt used in brewing and distilling. Any excess at each quarter was carried through to credit the next.

Half measures?
In 1993, because of the arcane method in which duty was still calculated, brewers were forced to lower the alcohol content of their beer to keep bar prices the same. After the Union with England in 1707, Scots fiscal policy merged with that of England. However, the variance in measurements often found Scotland unfairly taxed (see the shilling system). When a particularly contentious malt duty was introduced in 1713, the Scots rioted and much blood was shed in the resulting military suppression. Ten years later, the matter was finally settled by imposing a malt duty at half the English rate. This was charged until 1819 when rates were standardised throughout Britain.

In 1880 the Budget introduced a system of Beer Duty that continues to the present day. This replaced an existing malt tax and introduced in its place a beer duty of 6/3 per barrel of 1057 degrees. In 1889 this was changed to 1055 degrees.