Answer to written question on The excise duty directive and the Structures directive

WRITTEN QUESTION E-2190/10 by Emma McClarkin (ECR) to the Commission

Subject: The excise duty directive and the Structures directive

The Commission is expected to review EC Directives 92/83/EEC[1] (the structures directive) and 92/84/EEC[2] (on excise duty) and propose renewed or amended Directives within the next year. If Member States had more freedom to apply differential rates of excise duty on draught beer sold in hotels, restaurants and pubs, this would encourage responsible and sociable drinking and ensure that drinking beer in the pub remains affordable for consumers. When is the Commission expecting to bring forward proposals on the directive? What is the Commission's assessment of the impact of allowing Member States to levy differential rates of excise duty for beer sold in draught as opposed to bottles or cans?

[1] OJ L 316, 31.10.1992, p. 21.
[1] OJ L 316, 31.10.1992, p. 29.

E-2190/10EN Answer given by Mr Šemeta on behalf of the Commission

The Commission services are currently in the process of reviewing the directives dealing with excise duty on alcoholic beverages and this may, in due course, lead to a proposal being made by the Commission. Whether a proposal is finally deemed necessary and its exact timing cannot be predicted with certainty at this stage.

As regards the issue of allowing differential rates for beer sold in draught as opposed to bottles and cans, Directive 92/83/EEC does not currently provide for the possibility of differentiating excise duty rates on this basis. The basic position of that directive is that the same rate of duty should be charged on all similar products (e.g. beer) within a product category (leaving aside some separate provisions for small producers etc.).

The Commission is aware that the merits of allowing the above mentioned differentiation have been discussed in the United Kingdom (UK). This being said, any contemplation of a change of this type would need to take account of its potential problems. Indeed, products are subject to excise duties immediately upon their production or importation, and the amounts of excise duty due are normally collected at a point in the supply chain prior to the final retail. This contributes to simplifying collection and supervision by the competent tax administrations, for instance by reducing the scope of the trade that needs to be subject to controls. In a system such as the one contemplated in the question raised by the Honourable Member, it may not always be possible to ensure that taxes due are effectively paid. In particular, it would be difficult to guarantee the final destination of all products at the time the tax is charged, and to maintain full control over the types of containers used in the various branches of retail trade. Any change in the existing rules would also need to take account of the potential competition aspects, such as the fact that domestic producers may hold preponderant positions in the supply of draught beers. Generally speaking, the effects of any reform would need to be compatible with all provisions of European law, including the rules on the free movement of goods and taxation provisions (Articles 34-36 and 110 Treaty on the Functioning of the European Union).