Tax and Excise in the 17th Century
The increasing popularity eventually attracted the attention of the Scottish Parliament, which introduced the first
taxes on malt and the end product in the latter part of the 17th century. Ever increasing rates of taxation were
applied following the Act of Union with England in 1707, which had the effect of driving the distillers underground.
A long and bloody battle arose between the excise men and the illicit distillers. Smuggling then became standard
practice for some 150 years. By 1777 only 8 licensed distilleries were contributing to the revenue of the United Kingdom,
while nearly 400 unregistered stills were thought to operate within the City of Edinburgh. The operations of illicit
distillers in the remote Highlands and Islands of Scotland was probably vast.
By the 1820's although up to 14,000 illicit stills were being confiscated every year, more than half the whisky
consumed in Scotland was being drunk without the benefit of duty. Eventually the Duke of Gordon proposed in the
House of Lords that the Government should make it profitable to produce whisky legally.
In 1823 the Excise Act was passed which sanctioned the distilling of whisky in return for a license fee of
£10 and a set of payments per gallon of proof spirit.
This notable piece of legislation laid the foundations of the Scotch Whisky industry of today.
Smuggling died out almost completely over the next 100 years and many present day distilleries now stand
on sites used by smugglers of the past.
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Whisky Guide | 
