Press Release: Alcohol taxation: Commission proposes increases of minimum rates

The European Commission has adopted a proposal to increase the minimum rates of excise duty on alcohol and alcoholic beverages agreed in 1992, from 1 January 2008. Considering the need to avoid the EU system of minimum rates becoming meaningless and in line with the request of the Finance Ministers of the Member States' to come forward with this proposal, the Commission proposes to increase the minimum rates taking into account the inflation since 1992 and, therefore, restore their real value. The majority of Member States are unaffected by this proposal as their national rates already exceed the proposed new minimum rates. However, for those Member States that will have difficulties to increase their national rates immediately transition periods, up to 2010, are proposed. Although the inflation rate is 31%, the economic and social impact of the proposal can be considered as minimal. For example, for beer, the biggest required increase in national excise duty would be of the order of € 0.01 (one eurocent) on half a litre of beer, at the latest by 1 January 2010.