On Tuesday 12 March, European Finance Ministers will attempt to reach political agreement in principle ('general approach') on the new excise duty rules applicable in the EU (see EUROPE 12124/12) at the Ecofin Council (see other news).
They should adopt their position on: - the Directive on general arrangements for excise duty; - the Regulation on administrative cooperation on the content of electronic registers; - the Directive on the structures of excise duty on alcohol and alcoholic beverages.
After lengthy discussions on Friday 8 March, the Member States' ambassadors to the EU (Coreper) finally decided to keep the subject on the agenda, despite points still open on the harmonisation of the structures of excise duties on alcohol.
Measurement of the 'Plato degree' of beer
The first open point is the measurement of the 'Plato degree' of beer, which makes it possible to determine the tax base. The proposal provides for all the ingredients of beer, including those added after the completion of fermentation to be taken into account for the purposes of measuring the 'Plato degree' of the beer. But some Member States that do not currently use this method have opposed it.
The Brewers of Europe had already warned of the discrimination that this provision could create against flavoured beer (see EUROPE 12124/12) to which sugar syrup and flavourings are added after fermentation, which significantly increases the 'Plato degree' and thus the excise duty levied by Member States on beer.
In a compromise, presented at the beginning of March, the Presidency had proposed a transitional period, allowing Member States that do not take into account beer ingredients added after fermentation to measure the 'Plato degree' to continue to do so until 31 December 2025. But this solution had not convinced all Member States and, in its new compromise, it proposes to extend this date to 31 December 2030.
Exemption from excise duty or reduced rates for small home distilleries
During the negotiations, several countries also requested the possibility for Member States to exempt from excise duties or apply reduced rates of excise duties for ethyl alcohol distilled by private individuals, from fruit, for their households, and for their private use.
There would now be a compromise on this provision, provided that an annual quantitative limit is set. The Romanian Presidency has thus proposed a limit of 175 litres per year, which nevertheless still needs to be discussed.
Alternative optional method of calculation taking into account the alcoholic strength
The third outstanding point is the possibility of applying an alternative method to fix excise duty on wine, other fermented beverages and intermediate products: fix the excise duty on all products by reference to the number of hectoliter/degrees of actual alcoholic strength by volume of finished product. Facing the reluctance of some Member States, the Presidency suggests allowing this possibility until the end of 2030.
It should be noted that the rules applicable to the acquisition and transport from one Member State to another by private individuals of excise goods in the Directive on general arrangements for excise duty are also not yet agreed.
The text proposes to strengthen control powers by reversing the burden of proof and placing the burden of proof on the consumer rather than on the customs officer to prove that there would be no abuse in the use of excise products. Countries such as Belgium and Luxembourg would oppose it. (Original version in French by Marion Fontana)