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Home Estonia

Fancy a beer? Where in Europe will you have to pay the most tax on it?

October 19, 2024
in Estonia
Fancy a beer? Where in Europe will you have to pay the most tax on it?
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According to recent figures released by the US-based think tank Tax Foundation, Finland collects the highest amount of tax, €0.597 per 330 mL bottle of beer, followed by the United Kingdom at €0.413 and Ireland at €0.372.

On the other hand, the lowest beer tax is charged in Bulgaria, where it is €0.0316 per bottle of beer, followed by Germany at €0.0325 and Luxembourg at €0.0327.

Don’t get fooled by the miniscule amounts. In Germany, 27th in the ranking, where almost 80 million hL beer is consumed a year, the minimum European beer tax alone would pour a yearly income of €150m into the budget.

The tax report notes that some countries vary their tax rate according to how strong the beer in question is, and higher alcohol content could cost more for the same volume.

To compare actual beer prices, one should also count with the value-added tax (VAT) in each country, which is separate from the excise tax.

The tax on alcohol is a significant issue in many European countries. Some use it as tool to reduce alcohol consumption and lessen its harmful effects on public health, while others prioritise lowering the levy to stimulate the economy.

Meanwhile, European tax on alcoholic beverages varies, beer is taxed less than spirits but more than wine, with several countries placing no excise tax on wine whatsoever.

What has changed since last year?

As of 1 January 2024, several EU countries made slight changes to their beer excise rate.

The study highlighted only those with more than €0.01 per drink, such as France where the cost was increased from from €7.82 to €7.96 per hectoliter per alcohol content, amounting to €0.04 more per drink.

Estonia, Lithuania and Latvia also raised taxes on beer by €0.01, €0.014 and €0.013 more per drink, respectively.

On the other hand, Finland decreased its excise duty on beer from €38.05 to €36.20 per hectoliter in January 2024, amounting to €0.03 less per drink.

Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=6713a26987c6451abb8b29287bbd8e76&url=https%3A%2F%2Fwww.euronews.com%2Fbusiness%2F2024%2F10%2F19%2Fwhich-european-country-charges-drinkers-the-most-tax-on-beer&c=2006407882926389297&mkt=de-de

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Publish date : 2024-10-18 22:30:00

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Tags: EstoniaEurope
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