Industry has halved alcoholic drinks in the period 2009-2021, with its gradual increase Excise tax (excise tax) two years 2009-2010 to finally have results opposite to those expected.

Cause; A 125% increase in the tax rate over this period, an increase that remains in place, confirming the well-known “nothing is more permanent than temporary”, combined, of course, with the decade-long crisis that followed, resulted in a total loss of 1.1. billion euros. It was announced yesterday Sofia PapanicolaouGeneral Manager of the Alcoholic Beverage Producers Association (EnEAP) at a special event of the Support HORECA Alliance for sustainable food and hospitality in Greece.

The aforementioned losses were not the only ones, since, according to estimates, over the same period, i.e. in the period 2009-2021, according to a study by the Foundation for Economic and Industrial Research (IOBE), about 37,700 jobs were lost. from the entire supply chain of the alcoholic beverages sector, as well as 206 million euros in income from work. To date, the sector has around 112,000 companies, including manufacturing, marketing and distribution, with a total of 60,834 jobs and a total contribution to GDP of 1.75 billion euros. In particular, income from work in the spirits supply chain is estimated at 333 million euros (2021 data).

Excessive increases in VAT have led to a reduction in consumption, but mainly to the replacement of the consumption of legal drinks by illicit products such as the so-called two-day tsipouro and smuggled and counterfeit products.

According to the data provided Haris Mavrakis, President of the Association of Greek Spirits and Spirits Producers (SEAOP), if in 2010 the domestic consumption of Greek spirits (tsipouro, ouzo, liqueur, etc.) amounted to 9.57 million liters of alcohol, since 2011 it has approached 6 million liters, reaching 6.30 million liters in 2019 (down 34% compared to 2009) and 5.48 million liters in 2021 (down 43% compared to 2009). He even mentioned that the VAT, which in Greece on alcoholic beverages is 25.5 euros / liter, is the highest in the EU-27 based on the average per capita income in 2021 and is actually 5 times higher than, for example, in Germany.

To get a better idea of ​​the amount of VAT charged on alcoholic beverages in Greece, suffice it to say that the VAT charged on a 700 ml bottle of vodka is €7.14, while in Spain it is €2.70. €2.90 in Italy and in neighboring countries where alcohol is often smuggled out €1.157 (Bulgaria) and €1.54 (North Macedonia). “70% of the price of the bottle is VAT and VAT. He can’t take it anymore,” said Isidoros Revacs, ENEAP president and head of Ambix.

The industry is demanding a reduction in VAT from 25.5 euros/liter of ethyl alcohol to 18 euros/liter of ethyl alcohol, which is the average value of VAT in the EU. In fact, according to IOBE and industry calculations, such a reduction would increase government tax revenue by at least €11.9 million, strengthen GDP by €159–314 million, and create 11,500 new jobs.