Alcohol excise duty: Europe plans to reshape 25-year-old rules | Progresiv
The European Commission plans to reshape 25-year-old rules governing excise duty on alcohol because they need to be modernized to keep pace with the advances of technology and trade opportunities that are present today. 
The Commission has tabled a series of updates of the rules governing alcohol excise duties to better reflect the current climate in alcohol markets across Europe. These updates will pave the way for a better business environment and reduced costs for small alcohol-producing businesses as well as better protection for consumer health, according to the EC.
The recent 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 European Union.
The proposal will put in place a uniform certification system confirming the status of independent small producers throughout the EU which, according to the EC, will reduce the administrative and compliance costs for small producers who will be able to benefit from reduced excise rates under certain conditions.
The plan will also ensure a precise and consistent classification of cider across the EU and clarify the correct manufacturing processes and conditions for denatured alcohol.
It will update IT systems to track movement of certain denatured alcohol and increase the threshold for lower strength beer that can benefit from reduced rates from 2.8 percent volume to 3.5 percent volume.
This will provide an incentive for brewers to be innovative and create new products while encouraging consumers to choose low-strength alcoholic drinks over standard ones, thus reducing alcohol intake.
The proposal also includes measures in general excise duty rules to remove barriers for small and medium-sized enterprises (SMEs). This will allow SMEs to use modern IT systems when they wish to do so and lifts their existing obligation to employ tax representatives.
EU countries can currently insist that distance sellers of excise goods employ tax representatives, which can make legitimate trade financially unviable.
The proposal could be very welcome news for sectors within the EU’s alcohol industry as the rise of small and artisanal producers continue to peak while sales of low alcohol drinks are rising as consumers, particularly millennials, opt for healthier choices in terms of alcohol content.
Global alcohol consumption is declining and there is an increasing consumer trend towards cutting down on alcohol or cutting it out altogether. This is leading to more and more non-alcoholic or low ABV products hitting the market. (www.foodingredientsfirst.com)
