An urgent dialogue on the future of European winemaking and a common EU approach towards the excise duty has been called for by the Czech Grape and Wine Producers Association in an open letter addressed to EU Commission President Ursula von der Leyen.
According to the association, the EU Commission should launch a dialogue to discuss the future of the wine-making sector, as it faces unprecedented challenges, particularly the impacts of climate change. Moreover, they warned against potential unequal conditions in the European market caused by various levels of excise duty in member states countries.
“The discussion on aligning the legislative approach to excise duty as a tool for consumer protection and public health impacts should also be an integral part of the dialogue,“ Czech Grape and Wine Producers Association President Martin Chlad wrote in the letter.
A similar letter was also sent to the Czech Prime Minister Petr Fiala.
The EU legislation currently sets only harmonised minimum excise duty rates on alcohol. For wine, the minimum rate is €0, while for beer, it is €1.87 per 100 litres.
For wine, northern European countries generally impose higher excise duties than those in the south or centre.
“Although the vast majority of winemaking countries apply the same rules on wine taxation, the current legislation allows national excise duty rates to fluctuate freely, which may create unequal conditions on the European market,” the association argued.
In Czechia, there is currently no excise duty on still wine. However, the Czech government is considering imposing new taxes on the wine sector to consolidate the state budget.
Czech winemakers strongly oppose such an idea, claiming that other European countries, such as Germany, Austria, Hungary, Slovakia, and southern countries, also do not impose duties on wine. Winemakers say that if Czechia introduced the tax, it would make Czech wine more expensive and thus uncompetitive.
Winemakers are, therefore, turning to the European level to discuss the issue at the EU level to avoid unfair conditions.
Czechia is one of Europe’s smallest wine producers, but it is an important part of the culture and economy in Moravia, the country’s southeastern part.
(Aneta Zachová | Euractiv.cz)
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