On 11 April 2022 the European Commission began a consultation on the minimum rates of alcohol excise duty in the EU. The consultation will continue until 4 July 2022.

The consultation aims to gather the views of the relevant stakeholders on the minimum excise duty rates for alcohol and alcoholic beverages. The European Commission is looking for views on the affordability of, and demand for, the range of alcohol products in the EU and general developments in the market for alcohol.

In the EU there are minimum rates of duty on alcohol and alcoholic beverages, based on a number of product categories. Minimum rates of excise duty are set for beer, wine, fermented beverages other than wine and beer (such as cider), intermediate products (such as port and sherry) and ethyl alcohol (spirits). The EU Member States can set their own rate of duty as required by their national budgets, but the rates must be above the minimum rates in Directive 92/83/EEC. The EU has not revised the minimum rates since 1992.

In 2020, the Council adopted new rules amending the Directive. The rules outline the categories of product, the structure of excise duties on alcohol and alcoholic beverages and the basis for calculation.

Purpose and scope

A comprehensive evaluation is required to assess whether the minimum rates of excise duty on alcohol and alcoholic beverages, are still valid, and to ensure that the basis of taxation (volume or alcoholic content of the beverages) is appropriate to policy objectives given the changing alcohol consumption patterns.

The review will look at the framework of the alcohol excise and its appropriateness for combating tax fraud, protecting public health and pursuing wider goals in society. The evaluation will examine the issues and look at good practices that can address the issues identified.

Under the Directive the European Commission should regularly report to the Council on implementation. The evaluation will be the subject of discussion with Member States on the legislative framework. It will cover the categories of alcohol products that are within the scope of the Directive and look at the Member States that are most affected by the present framework, with a focus on the period since 2010.

Consultation strategy

The public consultation will be accessible through the European Commission’s website for twelve weeks. There will also be discussions with the authorities in Member States. The process will also include in-depth interviews with various stakeholders.

Eight weeks after the public consultation closes, a factual summary report will be published. A summary of the results of all the consultation activities will also be published.

Methodology

The consultation will examine the policy framework taking into account both national and EU rules. The qualitative and quantitative data to assess the Directive will be taken into consideration in the evaluation. In the course of the work previous documents will be examined and the broader policy environment will be considered. The methodology will include stakeholder consultation, surveys and interviews; desk research; data analysis; and case studies in selected Member States.