The EU requires member states to levy a minimal excise obligation on beer however the majority of nations truly cost extra.
European beer costs are topped up with hefty taxes, other than the VAT, because the European Union requires member states to cost at the very least €1.87 per 100 litres (26.4 gallons).
The required tax interprets to roughly €0.0309 for the standard bottle of 330 mL (11.2 oz) of 5% alcohol content material beer, however only some nations stay near this price.
In keeping with current figures launched by the US-based suppose tank Tax Basis, Finland collects the very best quantity of tax, €0.597 per 330 mL bottle of beer, adopted by the UK at €0.413 and Eire at €0.372.
However, the bottom beer tax is charged in Bulgaria, the place it’s €0.0316 per bottle of beer, adopted by Germany at €0.0325 and Luxembourg at €0.0327.
Do not get fooled by the miniscule quantities. In Germany, twenty seventh within the rating, the place virtually 80 million hL beer is consumed a yr, the minimal European beer tax alone would pour a yearly revenue of €150m into the funds.
The tax report notes that some nations differ their tax price in response to how robust the beer in query is, and better alcohol content material may price extra for a similar quantity.
To check precise beer costs, one must also rely with the value-added tax (VAT) in every nation, which is separate from the excise tax.
The tax on alcohol is a big problem in lots of European nations. Some use it as instrument to scale back alcohol consumption and reduce its dangerous results on public well being, whereas others prioritise reducing the levy to stimulate the financial system.
In the meantime, European tax on alcoholic drinks varies, beer is taxed lower than spirits however greater than wine, with a number of nations putting no excise tax on wine in any respect.
What has modified since final yr?
As of 1 January 2024, a number of EU nations made slight modifications to their beer excise price.
The research highlighted solely these with greater than €0.01 per drink, comparable to France the place the price was elevated from from €7.82 to €7.96 per hectoliter per alcohol content material, amounting to €0.04 extra per drink.
Estonia, Lithuania and Latvia additionally raised taxes on beer by €0.01, €0.014 and €0.013 extra per drink, respectively.
However, Finland decreased its excise obligation on beer from €38.05 to €36.20 per hectoliter in January 2024, amounting to €0.03 much less per drink.