On Friday 28 October, the European Commission published a series of recommendations to improve the current framework for excise duties on alcoholic drinks. It argues that the current rules, which are more than 20 years old, need to be updated in the context of the fight against tax fraud.
In general, the Commission takes the view that the directive on harmonising the structures for excise on alcohol and alcoholic beverages has proven effective and appropriate to allow an adequate collection of excise duties for the vast majority of stakeholders.
Although the current general principles are conducive to neutral competition conditions, the Commission’s analysis showed that there were a number of competition distortions within the single market that are detrimental enough for it to need to take action. The example it gave concerns the lack of clarity on the existing exemption for denatured alcohol. This ambiguity gives the member states a broad margin for interpretation, leading to imbalances in competition, the institution argues.
Its analysis also flagged up unjustified administrative and compliance costs for tax administrations and economic operators. These costs result from certain definitions that may lead to legal uncertainty on the treatment of specific products. (Original version in French by Élodie Lamer)