Is this the END of cheap booze in Spain? EU pushes for higher taxes
Is this the END of cheap booze in Spain? EU pushes for higher taxes on beer, wine and cigarettes across all member states
- Minimum tax rates applied to alcoholic in the EU have not changed since 1992
- But there is now appetite to introduce a minimum rate, with a survey on-going
- Spain levies one of the lowest rates of tax on alcoholic beverages in the EU
- This, combined with its weather, makes it an ideal tourist attraction for Brits
- But there are concerns from health groups over affect of cheap alcohol in Spain
- The EU has issued a bloc-wide call for public feedback, which closes on July 4
The European Union is pushing for higher taxes on beer, wine and cigarettes across all its members states in a move that could bring an end to cheap booze in Spain and other popular holiday destinations.
Minimum tax rates applied to alcoholic beverages in the EU have not been changed since 1992, but the EU commission said these have ‘not kept pace with inflation, the evolution of the market, consumption patterns or growing public health concerns.’
At present, Spain levies one of the lowest rates of tax in Europe, collecting about €2.69 per 700ml bottle of spirits. By comparison, Italy collects €2.90, Germany €3.65 and France rakes in €5.05.
Spain’s cheap drinks, combined with its warm weather, make it an ideal tourist destination for many holidaymakers – particularly those from Britain
When it comes to beer, Spain collects even less – taxing €0.03 per 330ml – well below the EU’s average of 14 cents.
The country’s cheap drinks, combined with its warm weather, make it an ideal tourist destination for many holidaymakers – particularly those from Britain.
In the summer months, Spain’s restaurants and bars thrive, with many relying on tourism to get by. Spanish establishments are famous for their ‘happy hour’ deals (which can last far longer than an hour), and for offering free tapas on the side.
The tourism industry generated over 12 percent of Spain’s GDP before the Covid-19 pandemic. During the pandemic, Spain’s economy took a major hit when international travel was halted and planes were grounded.
That being said, research shows that if Spain levied the same rates as its fellow EU nations, it could collect an additional €1billion in taxes every year.
According to 2019 figures, cited by Diario de Navarra, Spanish excise duties accounted for just 0.29 percent of its total tax revenues – compared the the EU average of 0.79 percent.
When it comes to beer, Spain collects €0.03 tax per 330ml – well below the EU’s average of 14 cents. Pictured: British tourists in a bar in Tenerife
Pictured: European excise duties per 700pm of liquor, by country. Of the 28 countries shown, Spain has the 23rd lowest rates
Health campaigners have also called on Spain to introduce higher taxes on alcoholic beverages, with younger people particularly at risk of negative health issues.
According The Local ES, the percentage of teenagers who say they ‘often’ get drunk in Spain is much higher than the EU average of 17 percent.
De Navarra reported that the suggestion of higher taxation and health restrictions has set off alarm bells in Spain’s wine industry, which recently surpassed France as the second largest producer of wine – behind only Italy.
It noted that the government has said however, that it ‘will always defend that wine with alcohol is part of the Mediterranean diet , and that moderate consumption of it is perfectly compatible with a healthy diet’.
The European Union has issued a bloc-wide public call for feedback on its current system of governing tax rates on alcohol, which will stay open until 4.
Source: Read Full Article