Taxation

The Finnish presidency had mixed results with taxation.

Attempts to adjust excise duties on alcoholic drinks to reflect an inflation rate of 31% since 1992, the last time they were revised, were blocked by the Czechs because of concerns about making beer less competitive compared to wine, for which there is no minimum rate of tax.

The Commission argued that the biggest increase in any member state would be €0.01 on half a litre of beer. The Czech Finance Minister Vlastimil Tlustý brought a barrel of Pilsner Urquell to the Ecofin meeting at the end of November to highlight his position.

In the end the Commission agreed to draft a report on the taxation of alcohol next year. The Finns did, however, get a deal to increase duty-free allowances for travellers coming into the EU from third countries. There was also an agreement to extend the existing rules on taxation of e-commerce until 2008.

The Finnish presidency had mixed results with taxation.