The SNP has been warned a proposal for the party to support a new levy on whisky firms would lead to job losses.
Opposition politicians branded the idea “insane” and claimed distilleries could be forced to shut if the idea was adopted by the Scottish Government.
The SNP’s Glasgow southside branch and trade union group will push for the levy to be introduced at the party’s annual conference in October.
They claim it could help the government raise much-needed revenue to support families struggling to pay their bills as energy costs soar.
It is the second year in a row the idea has been put forward, after the proposal was rejected by ministers less than 12 months ago.
The Scotch Whisky Association insists firms already pay their fair share due to high excise duty rates.
Tory MP Andrew Bowie said: “The whisky industry more than pays its way for the UK economy.
“This insane levy idea has nothing to do with taxing fat cats. It would attack jobs across Scotland, close distilleries in my constituency, and threaten our internationally recognised brands.
“It’s entirely in tune with the SNP’s approach to fiscal ineptitude — first demonise industries which underpin our economy, then blame Westminster when it all goes wrong.”
Meanwhile, Lib Dem Orkney and Shetland MP Alistair Carmichael said: “The SNP have been hitting the drink a bit too hard if they think that a tax on Scotland’s national drink will help our economy to flourish after the pandemic.
‘Colossal hangover’
“We should be looking at ways to make Scottish produce more attractive, not hammering customers. These plans threaten to leave whisky producing areas with a colossal hangover.”
The whisky industry took a huge hit in 2019 when ex-US president Donald Trump introduced a major 25% tariff on single malts.
Scottish Government analysis found that this had a significant financial impact on the industry.
However, the export tax was later reversed by his successor Joe Biden for at least five years.
The GMB trade union’s Scotland branch is firmly against any new domestic levy being imposed on the industry.
A spokesperson said: “In the grip of the biggest cost of living crisis in forty years, anything that could compromise investment or job security in this vitally important sector of the economy would be folly.”
The SNP motion urges the government to use “all of the existing limited devolved powers, to maximise sources of revenue including the feasibility of a domestic levy on the production of whisky”.