Download - Beer taxation of tomorrow - Trends in Europe
Jan LichotaUNED
Beer taxation of tomorrow
–
European trends
15TH INTERNATIONAL
BELGIAN BREWING CONFERENCE
CHAIR J. DE CLERCK XV
THE BEERS OF TOMORROW
LEUVEN, 7 SEPTEMBER 2015
Jan Lichota
Student, Political Sciences and AdministrationUniversidad Nacional de Educación a Distancia (UNED)
Academic Ichec Brussels Business Management Université de Liège International Relations; Cultural Studies Universidad Complutense Law
ProfessionalThe Brewers of Europe Polish National Tourism Office
Associative European Beer Consumers Union Polish Beer Brotherhood
Media Scandinavian Brewers Review Beer consumers & collectors magazines (Ireland, Spain) Food&Drinks press, Tourism (Poland)
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Ancient Egypt
• First beertaxes
Middle Ages
• Local tax
Modern times
• Specific tax
Beer taxation: Not so long time ago …
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Administrative arrangements
Administrative cooperation
Economic coordination
D+C agenda
1974
1st proposal
1987
New approachand proposal
1990
Framework proposal
1992
EU framework
1995
Evaluation
2006
AttemptMin. rate increase
2010
• Study for EC
2015
• Consultation
• Study for EC
2016
Follow-up
Technology
Market
Customs
Countries
Court rulings
Other
The excise framework in perspective
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Alcoholic beverages in EU fiscal directives
Beer
• Made from malt but also includes beer mixed with non alcoholic drinks, e.g. shandy. Must exceed 0.5% alcohol by volume.
Wine
• Only wine from fresh grape (still and sparkling)
Fermented beverages other than beer and wine
• Examples include cider, fruit wines etc
Intermediate products
• All alcoholic beverages between 1.2% vol and 2.2% vol; which cannot be regarded as beer or wine. Generally fermented beverages to which ethyl alcohol has been added.
• Examples includes port, sherry etc.
Ethyl alcohol
• Pure alcohol and spirits
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Beer Wine
(still/sparkling)
Other fermented
(Still/sparkling)
Intermediate
products
Ethyl alcohol
Products classified under
CN code 2203
Products containing
mixture of beer with
non-alcoholic drinks
falling within CN code
2206
Products classified under
CN code 2204 and 2205
Products classified under
CN codes 2204, 2205,
2206 with exceptions of
those classified as 1)
beer/still wine 2)
sparkling wine
Products classified under
CN code 2204, 2205 and
2006 which are not
classified as wine or
other fermented
beverages
Products classified under
CN codes 2207 and
2208, over 1,2 % abv.
Products classified under
CN codes 2204, 2205
and 2006, over 22 % abv.
Potable spirits containing
products, whether in
solution or not
Over 0,5 % abv. 1,2 % - 15 %
15% - 18% abv
1,2 % - 8,5 %
1,2 % - 10 %
10% - 15% abv (13)
1,2 % - 8,5 %
Between 1,2 % and 22 %
abv.
Over 1,2 % abv.
Over 22 % abv.
The European Union framework: Categories
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Directive 92/83 EEC
Beer Wine
(still/sparkling)
Other fermented
(Still/sparkling)
Intermediate
products
Ethyl alcohol
Volume
+ Strength
Volume Volume Volume Volume
+ Strength
0,748 €/ hl / °Plato or
1,87 €/hl / °alc.
0 € / hl 0 € / hl 45 €/ hl 550 €/ hl at 100°Alc.
Reduced rates related to
production levels
Reduced rates related to
alcohol content (≤
2.8°alc.)
Reduced rates related to
alcohol content (≤
8.5°alc.)
Reduced rates related to
alcohol content (≤
8.5°alc.)
Reduced rates for
determined products
(40%, 50%)
Reduced rates related to
production levels and for
some regional products
Reduced rates related to
alcohol content (≤
10°alc.)
The European Union framework: Rates basis
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Directives 92/83 and 92/84 EEC
Beer (EU)
• Option to use :
- ALCOHOL BY VOLUME or
- PLATO (the percentage by weight of sugar extracts contained in 100 grams of wort)
• Rate must be equal to or exceed the minimum rate at its standard level
• Must apply the same rate of duty per hectolitre
• If Plato system used, Member States may divide beer into categories consisting of no more
than 4 degrees Plato per category
• Member States may ignore fractions
• Option of reduced rates for small independent breweries, which can be lower than the
minimum rate
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Europe
• Plato
• AT, BE, BG, CH, CZ, DE, ES, IT, LU, MT, PL, PT, RO
• Alcohol
• All other countries
Tax base
• Progressive beer duty on production
• AT, BE, CH, CZ, FI, LU
• Volume based reduction
• BG, DE, DK, EE, EL, FR, HU, IE, LV, NL, PL, PT, RO, SK, UK
• No reduced rates applied
• HR, CY, ES, IT, IS, LT, NO, SI, SE
Reduced rates (production)
• DK, FI, FR, HU, IE, MT, ES, UK.
Reduced rates (< 2.8 °alc.)
… and the world.
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Country Base: Volume Base: Value Base: Strength Reduced Rates
(production)
Argentina
Australia
Canada
Chile
Japan
Mexico
New Zealand
Panama
South Africa
South Korea
United States
Source: OECD Tax Trends 2014, Local tax agencies
« Phone a friend »
Customs
• WCO
• EU Customs committee
Court
• ECJ
• National courts
« Elsewhere »
• EC
• The « world »
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
« 50:50 »
« Mixology »
• Alcohol per volume as basis
• Applicable to all alcoholic beverages categories
• Division formula
« Hybridisation »
• Alcohol per volume basis
• Use of threshold approach
« Blending »
• Plato as basis
• Strength levels applied
• Progressive beer duty
«Top up »
• Alcohol per volume as basis
• Additional duty layer
• UK > 8.5 °alc.; FR > 18°alc.
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
« Ask the audience »
EU Consultation
• From 28 08 2015 until 27 11 2015
• Open to business and all interested organisations and individuals
• Wish for feedback on key issues related to framework application at EU and
national level
Items
• Classification of products into corresponding category
• Market efficiency and operational administrative aspects
• Exemptions (e.g. denaturated alcohol)
• Own production/consumption
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Conclusions
Key trends
• Political dimension of design → impact on management / interpretation
• Use of creativity within the system
• Arising problems for fermented beverages and intermediate products of new kind
• Potential for making more common rules among beverages’ categories
• Move towards system update and stronger links with other regulatory domains
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Menu for tomorrow?
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015
Thank youDank u wel
Vielen DankMerci
DziękujęDankon
Q&A
Jan Lichota “Beer taxation of tomorrow” 15 Belgian Brewing Conference - The Beers of tomorrow - Leuven, 7 September 2015