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Wednesday, May 30, 2007

Parliament rejects increase of alcohol excise duties (EU)

Published: Wednesday 23 May 2007 | Updated: Thursday 24 May 2007


The Parliament was set to vote on 23 May 2007 on a report calling for the abolition of minimum rates of excise duty on alcoholic beverages, but after a series of close votes on several amendments, the MEPs decided to vote against the whole Commission proposal (355 against, 198 for, 39 abstentions). According to Parliament's rules, the issue is therefore now referred back to the Economic Affairs Committee.

Parliament's position on taxation matters is consultative only and member states in the Council can choose to maintain the current rates or increase them as they wish. However, according to EU rules, as long as the Parliament has not officially given its opinion, the dossier cannot move forward.

The Commission proposed , in September 2006, to increase the current minimum excise rates for alcohol (beer and spirits only, as excise rate for wine would remain at zero) by 31% in order to keep up with inflation. The plans are strongly opposed by the spirits industry.

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