Parliament votes against increase in alcohol excise duties

In a non-binding legislative resolution, MEPs voted against a Commission proposal to raise the EU’s minimum rates of excise duty on beer and spirits, and asked for the proposal to be withdrawn.

On 10 July 2007, the Parliament adopted a legislative resolution rejecting a Commission proposal to raise the EU-wide minimum rates of excise duty on alcohol other than wine. After a tight vote (303 in favour, 335 against and 44 abstentions) on the Economic Affairs Committee’s report, which backs amendments calling for the minimum rates to rise by 4.5%, the MEPs decided to vote against the whole Commission proposal and request that it be withdrawn. 

This was the second time that Parliament has voted on the issue. At the end of May, MEPs referred the dossier, after a series of close votes, back to the responsible committee (see EURACTIV 23/05/2007).

The Parliament’s rapporteur Astrid Lulling said that the Parliament did not only reject an overall rise of minimum taxes on alcohol but also now asks the Commission to prove, in a study, that the existing minimum taxes provide for more competition or at least better health protection. “Until now, the Commission has not proved in any case that its interferences in national tax autonomy have so far produced any positive effects,” said Lulling.

She also argues that the existing minimum rates have not led to any approximation of alcohol taxes in the past 15 years. “On the contrary – the divide gets bigger between high- and low-tax countries just as the abuse of alcohol is often bigger in countries with high alcohol prices compared to those with lower prices,” she said.

Parliament’s position on taxation matters is consultative only and member states in the Council can choose to maintain the current rates or increase them as they wish, though unanimity is required. 

The Commission’s original proposal suggested to increase the current rates for beer and spirits by 31%. However, the EU executive now backs the Parliament’s Economic and Monetary Affairs Committee’s position of a 4.5% increase, reflecting inflation since the 2004 enlargement.

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