:. Food Industry News


EU Set for 31 Pct Jump in Minimum Alcohol Duty

Source: Reuters
05/09/2006

Brussels, Sept 5 - Beer and spirits in the European Union could be taxed 31 percent higher from 2008 under a proposal expected to be made by the bloc's executive arm this month, an EU source said on Tuesday.

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The increase in the minimum EU duty reflects the same rate of inflation since the tax was last set 14 years ago, but will make little difference in practice as the duty in most member states is well above the current minimum, the source said.

The tax on half a litre of beer in Germany would increase by less than 1 euro cent (1.3 U.S. cents).

"It will be less than the annual inflation adjustment in most member states," the source said.

Duty is not levied on wine at EU level.

Many of the 10 mainly ex-communist member states that joined the bloc in 2004 have no EU-level alcohol tax.

"Probably the new member states will have until 2010 to introduce the minimum rate," the source said.

The new rate will have to be agreed by all 25 member states for it to take effect.



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