The European Commission has welcomed yesterday's agreement
reached in the Council on the new rules governing excise duties
on alcohol within the EU. This agreement paves the way for a
better business environment and reduced costs for small
alcohol-producing businesses.
The agreed new rules will ensure that small and artisan alcohol
producers have access to a new EU-wide certification system
confirming their access to lower excise duty rates across the
Union. This will have a positive impact on consumers, which will
benefit from a crackdown on the illegal use of tax-free denatured
alcohol to make counterfeit drinks. There will also be an
increase in the threshold for lower strength beer to which
reduced rates may apply to encourage brewers to produce beverages
with a lower alcohol content. The Commission will monitor the
introduction of an excise duty or reduced excise rates for
private production of ethyl alcohol and will report to the
Council on this measure.
Following the agreement, Paolo Gentiloni,
Commissioner for Economy said: "Today's agreement is a
welcome move towards a more modern and fairer tax regime for
alcohol which also supports our fight against fraud.”
Background
Excise duties are indirect taxes on the sale or use of specific
products, such as alcohol, and are usually applied as an amount
per quantity of the product (e.g. per 100 litres). All revenues
from excise duties go to national budgets and account for around
5-18% of tax revenues or 2 to 5% of the GDP of Member States. EU
Member States can set national rates as they see fit, provided
they respect EU-wide minimum rates.
Existing EU rules on the harmonisation of the structures of
excise duties on alcohol and alcoholic beverages were agreed in
1992 (Directive 92/83/EEC).
They set out common definitions of alcoholic products that are
subject to excise duty and ensure that all Member States treat
the same products in the same way. They also specify the method
to calculate excise duty on alcoholic products and the criteria
for products to benefit from reduced rates or exemptions.
New rules will be applicable from 1 January 2022.
