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Germany Upset By EU's Plans For Alcohol Tax Harmonisation

by Ulrika Lomas, Tax-News.com, Brussels

13 August 2002

Germany's Finance Minister, Hans Eichel has raised objections to the European Commission's plans to discuss the possibility of a harmonised minimum taxation level for alcohol within the European Union, according to reports in the German media at the weekend.

Speaking in response to an article in Bild Zeitung on Friday, Mr Eichel predicted that other EU member states famed for their wine and beer production, such as France, Spain, Italy, and Greece are likely to be similarly unhappy with any attempt to increase taxes.

The taxation of alcohol varies dramatically throughout the EU, with beer and wine producing countries levying minimal or no taxes on alcoholic beverages, and other countries, such as the Scandinavian member states, imposing prohibitively high rates of taxation on beer, wine, and spirits as part of a drive towards healthier living.

The EC is expected to argue during the meeting planned for September 11 that harmonising alcohol taxes throughout the Union could limit special border sales, such as those which occur between the UK and France, and also cut down on smuggling activity.

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