Excise duties: Commission welcomes agreement on rules governing alcohol

| July 31, 2020

The Commission has welcomed the 30 July agreement reached in the Council on the new rules governing excise duties on alcohol within the EU. This agreement paves the way for a better business environment and reduced costs for small alcohol-producing businesses. The agreed new rules will ensure that small and artisan alcohol producers have access to a new EU-wide certification system confirming their access to lower excise duty rates across the Union.

This will have a positive impact on consumers, which will benefit from a crackdown on the illegal use of tax-free denatured alcohol to make counterfeit drinks. There will also be an increase in the threshold for lower strength beer to which reduced rates may apply to encourage brewers to produce beverages with a lower alcohol content.

Following the agreement, Economy Commissioner Paolo Gentiloni said: “Today’s agreement is a welcome move towards a more modern and fairer tax regime for alcohol which also supports our fight against fraud.”

New rules will be applicable from 1 January 2022. The Commission will monitor the introduction of an excise duty or reduced excise rates for private production of ethyl alcohol and will report to the Council on this measure.

A full press release is available here

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Category: A Frontpage, Alcohol, EU, EU, European Commission, Health

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