The European Union mandates that member states impose a minimum excise duty on beer; however, many countries have chosen to set their rates even higher.
In Europe, beer prices are significantly impacted by various taxes beyond just VAT, with the EU establishing a baseline excise tax rate of €1.87 per 100 liters (approximately 26.4 gallons).
This mandatory tax results in about €0.0309 being added to the price of a standard 330 mL (11.2 oz) bottle of 5% alcohol beer, yet few nations adhere to this minimal charge.
Recent data from a prominent think tank indicates that Finland imposes the highest beer tax, at €0.597 for a 330 mL bottle, followed closely by the UK with €0.413 and Ireland with €0.372.
On the flip side, Bulgaria boasts the lowest beer tax, at just €0.0316 per bottle, with Germany at €0.0325 and Luxembourg at €0.0327.
However, don’t let those nominal figures fool you. In Germany, which ranks 27th in this regard despite consuming nearly 80 million hectoliters of beer annually, the minimal European beer tax alone could contribute approximately €150 million to the national budget each year.
It’s noteworthy that some countries adjust their tax rates based on beer strength; higher alcohol content often commands a steeper price for the same volume.
When evaluating actual beer prices, it’s essential to include the value-added tax (VAT) applicable in each nation, as this is distinct from the excise tax.
The taxation of alcohol remains a critical issue across various European nations. While some governments utilize these taxes as a strategy to curb alcohol consumption and mitigate associated public health issues, others seek to reduce taxes to stimulate economic growth.
When examining taxation on alcoholic beverages, beer generally faces lower taxes compared to spirits but higher than wine; notably, several nations impose no excise tax on wine at all.
What has changed since last year?
As of January 1, 2024, several EU countries have enacted minor adjustments to their beer excise duties.
The analysis focused on countries where the increase exceeded €0.01 per drink. For instance, in France, the excise tax rose from €7.82 to €7.96 per hectoliter of alcohol, translating to an additional €0.04 per drink.
Estonia, Lithuania, and Latvia have also slightly raised their beer taxes by €0.01, €0.014, and €0.013 per drink, respectively.
Conversely, Finland has lowered its beer excise duty from €38.05 to €36.20 per hectoliter as of January 2024, resulting in a decrease of €0.03 per drink.
Photo credit & article inspired by: Euronews
