BRATISLAVA, July 19, (WEBNOVINY) – The Cabinet Office is against the plan of the Finance Ministry to introduce the excise tax on still wine. In its comments within the interdepartmental review of the draf bill on excise tax on alcoholic beverages the Cabinet Office proposes to preserve the current zero tax rate on still wine and offset the expected shortfall in revenues of the state budget by hiking excise tax on distilled spirits. The Cabinet Office argues that the proposed increase in excise tax on still wine is too high and it fears that it would in all probability liquidate the sector of producers. The Cabinet Office mentions Italy, France, Spain and also Slovakia’s neighbors Hungary, the Czech Republic and Austria which have applied the zero excise tax rate on wine in line with the respective EU directive. “Slovakia should continue its tradition of a wine growing country that is here already since the Roman era and further improve the quality of its wine that has been continually increasing since 2002″, opines the Cabinet Office.
Also the Ministry of Agriculture and Rural Development disagrees with the Finance Ministry’s draft bill. They 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.
SITA
