| Author (Person) | Chapman, Peter |
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| Series Title | European Voice |
| Series Details | Vol.10, No.26, 15.7.04 |
| Publication Date | 15/07/2004 |
| Content Type | News |
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By Peter Chapman Date: 15/07/04 FRITS Bolkestein, the internal market commissioner, is today (15 July) sending a final warning to Sweden over excise duty rules that discriminate against imported wine and favour locally produced beer. The Dutchman has given the Swedes two months to change their rules before he takes them to the European Court of Justice. He alleges that the tax system is a breach of Article 90 of the EC Treaty. This forbids countries charging higher taxes on products from other member states than on competing domestic products. Under the Swedish law, beer stronger than 2.8% alcohol content by volume is taxed at 14.7 SEK (1.59 euro) a litre. By contrast a litre of wine between 8.5% and 15% is taxed at 22.08 SEK (2.40 euro). Bolkestein argues that the Swedish tax system is preventing Swedes, who traditionally prefer to drink beer, from switching to other types of alcoholic drink. Martin Rees, a legal advisor to The Brewers of Europe, said Swedish brewers could face damaging higher taxes on their produce if the Swedes opt not to reduce the taxes on wine. The industry is already being hurt because customers are buying alcoholic drinks in neighbouring countries, such as Estonia, where taxes are lower. But Rees said EU alcohol rules allowed other distortions in the drinks market to go unchecked. Countries such as France, Spain, Italy, Austria, Germany have zero or close- to-zero excise duties on wine. These are intended to help local vineyards. But this is in line with EU law because the countries also have domestic beer production. Moreover, member states - who have a veto in the taxation area - have refused Bolkestein's attempts to press for further reform of their alcohol regimes. The wine rebuke is the second legal reprimand for the Swedish authorities this week. Earlier, Bolkestein issued a rebuke against the country over its ban on domestic consumers using independent intermediaries to import alcoholic drinks for their private use into Sweden from other member states. He said the ban represented a disproportionate obstacle to the free movement of goods. Under Swedish law, in accordance with EU rules, individuals are allowed to bring alcoholic beverages into Sweden for their own use, if they themselves travel and bring the goods physically with them. However, if individuals do not transport the alcoholic beverages into Sweden themselves, their only option is to request Systembolaget, the alcohol retail monopoly, to bring them in on their behalf, which is time consuming and expensive. Consumers are prohibited from requesting other intermediaries to import alcohol on their behalf, even if they are prepared to pay the Swedish excise duties due. In October 2003 the Commission requested that Sweden lift the ban. But Stockholm retorted that the ban is in compliance with EU law since it is an integral and non-discriminatory part of the Swedish state's retail monopoly for alcoholic beverages and it is necessary for the protection of public health. |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Taxation |
| Countries / Regions | Sweden |
