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Forum Brief: Beer taxes

Proposals from the European Commission mean that British drinkers will have to wait until 2038 for the UK's high taxes on beer to fall into line with the rest of Europe.

The plans, which are aimed at reducing differences in duties in beer and wine prices in the EU, would see taxes in countries such as Germany and Spain - where taxes are low - rise by 2003. Britain - which has the third highest taxes in the EU - would reach the Brussels authorities' desired level in about 36 years.

Forum Response: British Beer and Pub Association

Rob Hayward, chief executive of the British Beer and Pub Association, told ePolitix.com: "The report from the European Commission affirms the strength of the case for reducing UK beer duty which we have been arguing for so long.

"The UK's high tax policy distorts competition in the European single market. Furthermore the wide divergence UK and French duty rates is an open encouragement to beer smugglers, which loses the Treasury money and damages Britain's beer and pub sector. Reducing beer duty is good politics and good economics."

Published: Fri, 22 Feb 2002 01:00:00 GMT+00