Czech Small Breweries Culture at Risk From EU Tax Harmonisation

The traditional Czech method of taxing beer is threatened by the EU’s efforts to level the playing field and simplify the taxation of alcoholic beverages. Brewers fear the change would endanger the quality of lager and bring high costs to smaller breweries.

Negotiations on how to unify excise duties on alcohol are starting to take off in the European Union. The Member States’ positions differ not only in terms of tax rate but also in terms of their calculation. Different rules apply to beer, wine and spirits. The proposed EU-wide tax would only consider the per centage of alcohol a drink contains. Czech brewers stand the most to lose from such a proposal. According to them, it would destroy Czech lager beer and have a devastating effect on microbreweries.

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The debate on modifying the European Directive, which sets the rules for excise duty on alcohol, is currently taking place in Brussels. A public consultation, during which various interest groups can comment on possible changes, is held until 11 July. Brewers are represented in EU negotiations by ‘Brewers of Europe,’ a European non-profit association. The highest number of responses for the consultation is from the Czech Republic.