Commission launches public consultation on how excise duties are applied to alcoholic beverages


Economy - published on 17 July 2017


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Source: European Commission Spokesperson’s

19/04/2017

The European Commission has today launched a
public consultation
on how excise duties are applied to alcohol and alcoholic beverages (“excise duty structures”). EU excise duty
rules
for alcohol aim to prevent trade distortions in the Single Market, ensure fair competition between businesses, and reduce administrative burden for businesses. Concretely, the rules
define product categories, methods to charge the duty and provide for reduced rates and exemptions from excise duty. However, these rules have not changed since 1992 and a recent Commission

report
has recommended clearer tax rules to support small producers of alcoholic beverages and to fight the sale of dangerous counterfeit alcohol. The Commission is also keen to reduce costs
for smaller businesses. In December, EU Finance Ministers
requested
that the Commission carry out the necessary studies to prepare a possible legislative proposal to revise the common rules. The aim now is to identify ways to alleviate the
administrative burden for both Member States and business, while reducing distortions in the internal market. Excise duties are indirect taxes on the sale or use of specific products. They are
usually applied as an amount per quantity of the product – e.g. per 1,000 litres in the case of alcohol. Revenues from excise duty go directly to the coffers of EU Member States. The consultation
will run until 7 July 2017 and is available
here
.

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