Short description of excise taxation framework for beer and key aspects from consumer perspective. Poster from 36th European Brewery Convention Congress in Ljubljana, Slovenia.

1. RESEARCH POSTER PRESENTATION DESIGN © 2015
www.PosterPresentations.com
The excise taxation framework for beer and other alcoholic beverages in the
European Union is about to change. The fiscal scheme established in 1992 as a
result of compromise between European Union countries has been applied beyond
its borders.
While the tax structure has been rather stable, taxation rates fluctuation has been
variable upon periods and various changes occurred in consumer habits and
beverages availability in the last 25 years.
The research provides an overview of the evolution of excise systems and most
recent and foreseen trends with direct impact on the consumer.
INTRODUCTION
METHODOLOGY
CONCLUSIONS
REFERENCES (simplified)
EU Directives 92/83/EEC, 92/84/EEC, 2011/118/EC;
European Commission and National tax administrations data and publications;
OECD; Eurostat; FAO; WTO;
Taking as base existing European Union’s framework legislation a research was done
on excise taxes at country level. An overview was made on tax structures, tax rates
and macroeconomic data per country. Additionally, data on beer consumption,
number of breweries and beer releases in selected countries was used for further
analysis.
JAN LICHOTA
Beer taxation in Europe - A consumer friendly framework?
Universidad Nacional de Educación a Distancia, Faculty of Political Sciences and Sociology, Madrid, Spain
Political Sciences and Administration
36th European Brewery Convention Congress – Ljubljana, 14-18 May 2017
P48
Excise taxation framework
Directives 92/83 and 92/84 EEC
jlichota1@alumno.uned.es
The excise taxation framework for beer is a consumer positive setup from
regulatory perspective, due to opportunities given to breweries as new entrants,
differentiation of products and generally tax stability.
European countries have varied moderately their tax structures and rates over the
last years. Although most of the changes are due to economic circumstances, the
impact on the consumer follows the general conditions of the economy. Only in
determined countries tax legislation was a more relevant factor.
The EU consultation (until June 2017) offers immediate possibilities to share
(brewers and) consumers’ views, prior to the release of a new legislative proposal.
MAJOR TRENDS (last 10 years)
MARKET LEGISLATION
Increased availability and variety of beers
Breweries and points of sale rise
Pro-consumer distribution and promotion
Tax structures legislation stability
Rates fluctuation low in most countries
Sales rules akin to consumer interest
OBJECTIVES
The aims of the research were to look from the current and time analysis
perspective on the impact of tax legislation on key market trends. The project
intentions were to measure the relevance of the nationally applied excise
legislation on the brewers’ opportunities for beer market enhancement towards
the consumers.
RESULTS
The EU framework has been adopted beyond the EU countries. The national
application of the tax structures didn’t raise major problems for beer consumers.
Tax rates differentials between some countries had an impact on local
consumption. Reduced tax rates facilitated the appearance of new entrants to the
market in various countries. Sales legislation is mostly positive to the consumer.
FUTURE
Based on feedback received, the European Commission has undertaken an analysis
on items which may have an impact on the consumer in the future, such as selected
beverage categories redefinition, reduced rates based on production volume and
strength, rules on home production/own consumption.
Developments in consumer behaviour and product innovation may also give new
perspectives.
Excise taxation of beer in the European Union
Euro per hectoliter at 10° Plato / 4 % alcohol; May 2017 (rounded)
Category Tax base EU Minimum Rate Reduced rates
Beer Volume /
Strength
0,748 €/ hl / °Plato or
1,87 €/hl / ° alc.
- production levels
(max. 200 000 hl/year)
- alcohol content (≤ 2.8°alc.)
Wine
(still/sparkling)
Volume 0 € / hl - alcohol content (≤ 8.5°alc.)
Other fermented
(still/sparkling)
Volume 0 € / hl - alcohol content (≤ 8.5°alc.)
Intermediate products Volume 45 € / hl - specific products individually
identified in the directives
Ethyl alcohol /distilled/ Volume /
Strength
550 € at 100 ° alc. - production levels
- Some regional products
- alcohol content (≤ 10°alc.)
Excise reduced rates for beer in European countries European taxation framework in global comparison
Category Countries
No reduced rates applied CY, ES, IT, IS, LT, NO, RS, SE.
Based on alcohol content
(≤ 2.8°alc.)
DK, FI, FR, HU, IE, MT, ES, UK.
Based on production levels
(≤ 200 000 hl / year)
Different levels per country
AL,AT, BE, BG, CH, CZ, DE, DK, EE, EL, FI, FR,
HR, HU, IE, LV, LU, ME, NL, PL, PT, RO, SI, SK,
UK.
Geographic zone Tax base choice and use
Africa Volume / strength,Volume or
Value
Americas Volume / strength,Volume or
Value
Asia Volume, Volume / strength, or
Value
Australia / New Zealand Volume / strength
Europe Volume / strength orVolume
20 20
18
24
12
8
30
33
50
10
130
30
21 21
90
30
13
8
17
19
28
18
16
7
84
48
14
109
€ 0,0
€ 20,0
€ 40,0
€ 60,0
€ 80,0
€ 100,0
€ 120,0
€ 140,0
Source: European Commission (2017)