Beer excise duty increase yields less than cabinet expected
The increase in excise duty on beer, combined with an endlessly wet and cold spring, is not doing the Dutch beer market any good. In the first quarter of 2024, beer sales fell by 2.4%. And this applies not only to beer sales in the hospitality industry, but also to beer consumed at home.
This decline can also be seen in beer excise duty revenue. The cabinet expects beer excise duty to bring in €70 million less this year than previously anticipated. This is despite the increase in excise duty on beer.
Increase in beer excise duty
We have been complaining about high beer prices for quite some time. Beer prices here keep rising every year thanks to excise duty—the excise duty on alcoholic beverages increased by 8.4% last January. In Belgium and Germany, excise duties on beer are considerably lower. In the Netherlands, the excise duty on pilsner (the most widely consumed beer) is €37.96 per hectolitre (100 litres). In Belgium, it is €22.17, and in Germany €9.44 per hectolitre.
Fred Teeven, chairman of Nederlandse Brouwers: ‘The cabinet thought that the average 8% increase in excise duty would bring in extra money for the treasury. The opposite is true. The Spring Memorandum shows that in 2024 the cabinet expects to collect almost €70 million less in beer excise duty than was anticipated at the end of last year.’ Smart beer lovers who live near the border cross over for their golden-yellow tipple.
Notable: decline in alcohol-free beer
Incidentally, the level of excise duty on beer depends on its alcohol content. Sales of the largest beer category, pilsner, fell by 2.8%. More notable is the decline in sales of alcohol-free beer (2.1%). Because this category plays an important role in prevention and combating alcohol abuse, you might think that alcohol-free beers, especially those without added sugars, would receive a full exemption. But nothing could be further from the truth.
It therefore appears that the sharp increase—of almost 200%—in the consumption tax on alcohol-free beer is having a negative effect on sales. In the first quarter of 2024, more than 2% less alcohol-free beer was sold, whereas in the past this was a growth segment.
Read also:
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- These European cities have the most expensive beers
- Weizen vs. witbier: what’s the difference?
Source: Stichting Dranken Nederland
