BRATISLAVA, July 18, (WEBNOVINY) — Slovak Ministry of Agriculture and Rural Development fundamentally disagrees with the draft bill on excise tax on alcoholic beverages as proposed by the Finance Ministry. Among other changes, it would increase the price of a 0.5 liter 10-Plato degree beer by EUR 0.05 and a liter of still wine by EUR 0.40. “We fundamentally disagree with the proposed excise duties on alcoholic beverages, as increasing excise tax duties and the administration connected with it will necessarily lead to increasing the prices to final products and to decrease of production and consumption of these beverages,” stated the ministry in its remarks to the draft.
They also suggest abandoning the proposed increase of the excise tax on still wine, the rate of which at present is zero, as according to the Ministry of Agriculture, such measure could lead to reducing domestic wine production by 25 percent. This could lead to a loss of some 750 jobs.
Slovak Agricultural and Food Chamber (SPPK) demands the Finance Ministry to withdraw the draft. According to the chamber, the draft contradicts actions of the EU which prefers beverages containing less alcohol and does this among other through the minimal tax tool. SPPK is convinced that the bill would thus damage domestic producers and would cause a massive black market expansion. Slovak Chamber of Commerce and Industry (SOPK) also has remarks to the bill, arguing that Slovak still wine producers could be disadvantaged compared to their Austrian, Hungarian and Czech competitors.
According to the draft bill proposed by the Finance Ministry, prices of beer and still wine in Slovakia can be expected to rise after the New Year. From January 1, 2012, the price of a half-a-liter 10-Plato degree beer should increase by 0.05 euros a liter of still wine by 0.40 euros. However, special rules should apply to small wine producers who produce on average not more than 250 hectoliters of wine per season. The Ministry of Finance expects the legislative changes to increase tax revenue in next year’s state budget by 45.5 million euros. In 2013 it should be 47 million euros and 47.6 million euros in 2014.
A novelty in the law is the introduction a single rate of excise duty on alcoholic beverages, whereby the tax rate for each type of alcoholic drink, i.e., wine, spirits and beer, reflects the alcohol content in the product. There will also be a new system of production of tax revenue stamps for use on bottles for hard drinks. It will be based on selection of a printing firm, to which the Customs Directorate will award the contract to print tax revenue stamps on the basis of a public tender. In order to facilitate the marketing of wine produced by local manufacturers on the market, the Finance Ministry adopted certain exceptions that should minimize their administrative burden.
SITA
