SOME small scale cider and perry producers may have to stop brewing, because of a new tax demand from the European Union.

The EU Commission has put in a request to scrap a long standing excise duty exemption for producers who make under 7,000 litres a year, - about 12,000 pints.

The UK Treasury is yet to agree; but if the new charge is implemented, it could have a considerable impact in the cider-making heartlands of Herefordshire and Worcestershire.

Large scale cider and perry producers will already be paying excise duty.

But one small producer, James Marsden of Gregg's Pit Cider and Perry, Much Marcle, is eyeing the situation with some concern.

Last year he produced 6,200 litres and did not have to pay excise duty.

He said: "The figure of 7000 litres has always been a barrier that stops cider and perry makers from getting bigger, because once you go over that, you have to go over that in a big way before you make any money. It's a big hurdle

"Below 7,000 litres, it allows small producers to have a go."

Mr Marsden said that if a flat fee instead of a sliding scale fee is introduced, "a lot of people will drop out of the business."

But he said that the National Association of Cider Makers was talking to the Treasury and he said of the proposed new duty for small producers, "it's not a question of when, it is a question of if it will be implemented".

A flat fee for small producers could be as much as £2,500 a year, but this would not be the case for a sliding scale system, where demands would be based on the amount of cider and perry being made.

South West MEP William Dartmouth (UKIP) said: "Cider and perry makers would be hit by rising costs as a result of this EU diktat which will leave a sour taste in the mouths of small-scale producers.

“Our Government should stand up to this Commission attack on small businesses and launch a spirited defence of our superb cider and perry industry.”