Brussels, 28/04/2004 (Agence Europe) - The question of harmonising taxation on alcohol still seems to be a controversial subject within the European Commission. According to information collected this week by the daily, Les Echos, a simple report on alcohol taxation prepared by the services under Commissioner Frits Bolkestein was not adopted by the College of Commissioners. The report denounces the different rates of taxation between Member States, which creates an incentive to fraud and competition distortion, it was said in circles familiar with the dossier under Frits Bolkestein. The rate of taxation on wine can reach up to 250 euros per hectolitre in the United Kingdom, 235 in Finland and 141 in Denmark, compared to 3.4 euro/hl in France and 0 in Austria, Germany, Italy, Luxembourg and Portugal.
In September 2002, a harmonisation project of Commissioner Bolkestein had already been rejected by 14 Commissioners to 20 (only the British and the Danish had given it their support). Like the draft report whose adoption has been put off indefinitely, the 2002 proposals recommended that the tax rates on alcohol fixed by the 1992 directive should be updated and that a minimum rate for wine should be introduced. We recall that the Commission has, moreover, proposed to liberalise and simplify the circulation of products subject to excise (see EUROPE of 3 April, p.8).