Beer vs Wine – Belgium vs France: Tax Wars

After France added a surcharge to beer sales, Belgium is fighting back threatening to tax French wine.  This from The Guardian:

Belgium and France are embroiled in a worsening feud over the price of a pint, with brewers incensed at French moves to slap big surcharges on beer excise and the Belgian government hinting at tit-for-tat rises on French wine.

From giants such as Stella Artois to small traditionalist outfits making beer as it was produced in the Middle Ages, the Belgians lay fair claim to being the master brewers of Europe. There are roughly 180 firms producing about 450 types of beer to a volume of 18m hectolitres a year, with about a third of exports – 3.5m hectolitres – going to France, the biggest foreign market.

Parliament in Paris is to vote before Christmas on government proposals to increase excise on beer by 160%, a tax the Belgians say is discriminatory and protectionist with a potentially calamitous impact on sales and jobs.

Pierre-Olivier Bergeron, Secretary General of The brewers of Europe, commented: “What makes this even more galling is that beer has been singled out amongst the other alcoholic beverages – despite beer only representing 16% of the French drink market and per capita beer consumption in France already being the second lowest in the EU.” The measure will hit all brewers and all beers, with only a slightly lower increase for some medium-sized breweries. Bergeron said: “One of the few rays of light for the French beer sector during the economic crisis has been the growth in micro-breweries, but these small businesses will also be hit with a 160% hike. And as for any health arguments that have entered the debate, one only has to note that it is the lowest strength alcoholic beverage that is being singled out here and even non-alcoholic beers will be hit by the top rate of 160%.”
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