Brewers set to unite for duties battle

Date: 07/01/1999

By Chris Johnstone

Brewers from four EU countries are considering joining forces to put pressure on the European Commission and their own governments to bring down duties on beer.

British, Finnish, Swedish and Irish brewers, whose products are taxed at up to ten times the levels of counterparts in low-duty countries such as France, want the Commission to honour its promise to harmonise excise duties across the EU and, in doing so, stamp out cross-border beer smuggling spawned by huge price differences.

“We will continue to campaign on our own but we hope to have more of an effect with this initiative,” said Tim Hampson of the UK's Brewers and Licensed Retailers Association.

Although excise duties across the EU are mostly converging at between ten and €20 per hectolitre, those in the four countries concerned are still far higher. And while Sweden, Ireland, and Finland have reduced duties slightly, the UK has actually widened the gap with the rest of the Union by increasing its levy on 1 January.

Hampson says the Commission should send a clear signal to countries with high levels of duty that they should lower them and, at the same time, recommend the introduction of minimum rates for wine.

European brewers are still waiting for a long-delayed Commission report on minimum duties for alcoholic drinks which could help end some of the distortions to competition in the sector.