spiritsNEWS October 2019

All drinks are equal, why treat them differently?

The Council negotiations on EU Directive 92/83/EEC on the structures of excise duty on alcohol and alcoholic beverages continue and a political agreement between Member States may be close. This file should not be closed without ensuring that small and independent distillers receive better opportunities and are granted fair treatment in terms of reduced excise rates when compared to small producers of other alcoholic beverages on the market.

Currently, there is a huge discrepancy regarding the treatment of small distillers as compared to small cider producers or small brewers. For instance, small brewers can produce 1000 times the amount of pure alcohol that start-up distillers can produce before the full excise rates apply. The ongoing revision of the EU Excise Structures Directive presents a unique, timely opportunity to address this situation and to provide small distillers with the same benefits and opportunities for growth as provided to small brewers and cider makers. Why not support all of the SME community in this sector? 

In times of political unpredictability which burdens one of Europe’s traditional sectors (eg, 25% tariffs imposed by the US on some of our producers), we call for support to create a framework of equal opportunities, ensuring fair treatment of spirits drinks and underpinning local traditional production and trade.

We ask Member States to amend the EU’s Excise Structures Directive to support the growth of the spirits sector. The benefits already provided to small beer and cider producers should be extended to craft distillers - namely by introducing a reduced excise duty option for small commercial distillers, similar to the proposed new benefit for cider and the existing benefit for small brewers.  Furthermore, low-strength spirit-based drinks should be allowed to benefit from reduced excise duty rates, in the same way as low-strength beer.

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