Update of rules governing alcohol excise duties
Commission proposes new rules that will pave the way for reduced costs for small alcohol-producing businesses and better protection for consumer health
The Commission has today proposed to reshape the rules governing excise duty on alcohol within the EU i, paving the way for a better business environment and reduced costs for small alcohol-producing businesses and better protection for consumer health.
Today's announcement means that small and artisan alcohol producers (including, for the first time, small independent cider makers) will have access to a new EU-wide certification system confirming their access to lower rates of duty across the Union. Consumer health will also benefit from a crack-down 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.
Concretely, today's proposal will:
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-Put in place a uniform certification system, recognisable in all EU countries confirming the status of independent small producers throughout the Union. This will reduce the administrative and compliance costs for small producers who should benefit from reduced excise rates under certain conditions.
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-Ensure a precise and consistent classification of cider across the EU, the current absence of which is a major obstacle for small cider producers who do not have access to the reduced rates afforded to small beer and spirit producers.
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-Clarify the correct manufacturing processes and conditions for denatured alcohol in the EU. Such alcohol is used in the production of goods such as cleaning products, screen wash, perfume and anti-freeze and is exempt from excise duty. This exemption can been exploited by unscrupulous producers who use denatured alcohol to make and sell potentially dangerous counterfeit drinks without paying tax and, even more importantly, endangering consumer health. Today's proposal will establish a modern system for reporting the misuse of certain alcohol formulations so that they will no longer be usable as denaturants.
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-Update IT systems: the new rules will replace the outdated paper-based procedures used to track movement of certain denatured alcohol and will result in the mandatory use of the Excise Movement and Control System. This will make it easier to follow movements of these high-risk products in real time, reducing the fraudulent use of this exemption and protecting consumers.
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-Increase the threshold for lower strength beer that can benefit from reduced rates from 2.8% volume to 3.5% volume, to provide an incentive for brewers to be innovative and create new products. This should encourage consumers to choose low-strength alcoholic drinks over standard ones, reducing alcohol intake.
The legislative proposals will now be submitted to the European Parliament and the European Economic and Social Committee for consultation and to the Council for adoption.