EU Changes Excise Duty Rules On Alcohol
EU member states have reached a provisional agreement on modernized taxation rules for alcohol products, following a meeting held on June 24, at which member states’ ambassadors to the EU provisionally endorsed proposals to update the excise duty rules on alcohol within the EU.
Since 1992, EU countries have had in place common rules to ensure that excise duties are applied in the same way and to the same products everywhere in the EU. These rules include minimum excise duty rates. The reform package will extend the special regime of reduced excise duty rates for small beer and ethyl alcohol producers to producers of other fermented drinks, such as cider. It will increase the threshold for lower strength beer that can benefit from reduced rates from 2.8 percent volume to 3.5 percent volume, with the aim of incentivizing consumers to choose low strength over stronger alcoholic drinks.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look