beer taxation in europe - a consumer friendly framework ? (poster)
TRANSCRIPT
RESEARCH POSTER PRESENTATION DESIGN © 2015
www.PosterPresentations.com
The excise taxation framework for beer and other alcoholic beverages in theEuropean Union is about to change. The fiscal scheme established in 1992 as aresult of compromise between European Union countries has been applied beyondits borders.
While the tax structure has been rather stable, taxation rates fluctuation has beenvariable upon periods and various changes occurred in consumer habits andbeverages availability in the last 25 years.
The research provides an overview of the evolution of excise systems and mostrecent 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 doneon excise taxes at country level. An overview was made on tax structures, tax ratesand macroeconomic data per country. Additionally, data on beer consumption,number of breweries and beer releases in selected countries was used for furtheranalysis.
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
The excise taxation framework for beer is a consumer positive setup fromregulatory 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 thelast years. Although most of the changes are due to economic circumstances, theimpact on the consumer follows the general conditions of the economy. Only indetermined 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 LEGISLATIONIncreased 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 analysisperspective on the impact of tax legislation on key market trends. The projectintentions were to measure the relevance of the nationally applied exciselegislation on the brewers’ opportunities for beer market enhancement towardsthe consumers.
RESULTS
The EU framework has been adopted beyond the EU countries. The nationalapplication of the tax structures didn’t raise major problems for beer consumers.Tax rates differentials between some countries had an impact on localconsumption. Reduced tax rates facilitated the appearance of new entrants to themarket in various countries. Sales legislation is mostly positive to the consumer.
FUTURE
Based on feedback received, the European Commission has undertaken an analysison items which may have an impact on the consumer in the future, such as selectedbeverage categories redefinition, reduced rates based on production volume andstrength, rules on home production/own consumption.
Developments in consumer behaviour and product innovation may also give newperspectives.
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 individuallyidentified 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 or Volume
20 2018
24
128
3033
50
10
130
30
21 21
90
30
13
8
1719
28
1816
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)