Scotch whisky sales in UK increased 2% during in 2015 following five years of decline, after cut in excise duty.
The rise in sales is attributed to the 2% cut in excise duty in the UK's Budget 2015 and removal of alcohol duty escalator in 2014, according to Scotch Whisky Association (SWA) report.
The excise duty cut of 2015 has also contributed to the £102m rise in revenue receipts from spirits, thus boosting the country's Treasury reserves.
In the past 10 years, the number of bottles released for sale in the UK declined by around one-fourth.
In 2005, more than 107 million bottles were sold. However, the sales volumes did not exceed 100 million in any year after 2008.
However, the scenario changed last year which saw around 84.9 million bottles released for sale as compared to 83.3 million bottles made available for sale in 2014, the report stated.
The association report states that the current tax level including excise and VAT of 76% on average priced bottle of Scotch whisky is still very high.
The SWA seeks 'Fair Tax for Whisky' with an additional 2% excise duty cut in the UK Budget on 16 March.
Scotch Whisky Association CEO David Frost said: "A strong UK market is vital, particularly for new entrants to the industry. In the last two years, nine new distilleries have started production in Scotland and they need a strong domestic base to grow from.
"The UK is still the third biggest market for Scotch in the world, but it is fragile and competitive. That's why we want Chancellor George Osborne to support an important domestic industry by cutting duty by a further 2% next month.
"The tax treatment of Scotch in its home market also has repercussions for our export performance. If overseas governments see Scotch being treated unfairly in the UK that could influence their decisions.
"This makes it harder to ensure a level playing field for Scotch overseas. With Scotch now the biggest net contributor to UK trade in goods, it is important the Chancellor acts to support distillers and therefore the wider economy."
