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Greece ‘considers’ raising excise tax
By Kristiane SherryThe Greek government is considering raising the excise tax on spirits in an effort to generate further revenues, trade association Spirits Europe has reported.
The Greek government is reportedly considering further increasing excise tax on alcoholIn a move to boost government coffers, the Greek administration has already increased alcohol excise by 125% over four successive policy changes. Yet this has not generated the anticipated revenue, says the trade body.
“It has instead fuelled smuggling, and strengthened the black economy, tax evasion and delinquent behaviour in general,” Spirits Europe said in a report.
As a result, legal spirits sales have recorded declines of -45.7% and in four years, excise tax revenues from spirits contracted from €348.76m in 2011 to €272.4m in 2015. These revenues now stand at the lowest level in six years.
“These changes in taxation have led to the contraction of the industry and have reduced the competitiveness of Greek tourism, in turn increasing unemployment,” Spirits Europe continues.
“Planning further increases in a further vain attempt to generate more revenues will not work and will instead intensify the aforementioned negative effects.”
Greek producers are now advocating for a gradual de-escalation of the excise rate over a three-year period with the aim of driving growth and creating jobs, while simultaneously growing public revenues.