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EU to Raise Minimum Duty on Alcohol Sales

Source: Reuters
05/07/2006

Brussels, July 5 - The European Union's executive arm will propose a higher minimum duty on alcoholic drinks later this year to reflect a rise in inflation since the tax was last set 14 years ago, an EU official said on Wednesday.

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"We expect to make this proposal in early autumn and then the Finnish presidency of the EU will put it to Ecofin (finance ministers) probably in November," European Commission spokeswoman Maria Assimakopoulou told a news briefing.

Most of the 25 member states have fixed a minimum rate that is already higher than that required by the EU and therefore an increase would have little or no effect in real terms, Assimakopoulou said.

Even a hefty 25 percent rise in excise duty on a bottle of beer in Germany would be less than 1 euro cent (1.3 U.S. cents), she said.

There would also be a transitional period for member states to introduce the increase, she added.



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