Belgian brewers challenge French beer tax increase

The Belgian Brewers' Federation has submitted an appeal to the European Commission, challenging the French government's decision to raise the tax on beer by 160% at the beginning of the year, writes Tax News’ Ulrika Lomas. The Brewers of Europe association has followed suit. The French government increased the specific tax on beer by 22 cents per litre from January 1, 2013, within the framework of its 2013 social security finance law. The measure formed part of efforts to reduce excessive alcohol consumption, particularly among the young as a matter of priority. At the time, the government defended the provision, arguing that the existing tax rate was particularly low compared to rates applied in other European countries. The government insisted that preventative action was therefore needed to ensure that it becomes financially more difficult in future to access alcoholic products. The tax hike is simply "discriminatory" and "anti-European," said Sven Gatz, president of the Belgian Brewers' Federation. The Federation had previously warned of the impact of the tax rise on investment in the brewing sector and on employment, both directly and indirectly. According to the French Brewers' Federation, beer in France is now 14% more expensive than in 2012. Production has fallen by 16.5% in the first half of 2013. In December last year, following the adoption of the beer tax hike by French lawmakers, Pierre-Olivier Bergeron, secretary-general of the Brewers of Europe, lamented the fact that beer "has been singled out amongst the other alcoholic beverages – despite beer only representing 16% of the French drink market and per capita beer consumption in France already being the second lowest in the European Union."