Senate disagrees with National Assembly over beer tax hike

Brewers should not cheer the Senate’s rejection of a draft law to raise beer excise by a whopping 160 percent. In its vote last week, the French Senate proposed a 120 percent increase instead with a reduced rate for smaller brewers.

According to the Senate’s proposal, breweries producing more than 200,000 hl will see the excise rate go up from EUR 2.75 to EUR 6.05 per hl and Plato, while those brewing less than the 200,000 hl threshold will see it rise to EUR 3.25 from their current reduced rates of EUR 1.38 per hl and Plato. The Senate’s vote means that the National Assembly will have to review its draft law before a final vote can be cast.

Moreover, as The Brewers of Europe point out, the 120 percent excise hike still means a massive increase that will harm everybody: brewers, retailers, publicans and consumers and could lead to a loss of jobs in the industry.

There is another worry to contend with: Should France actually increase its beer excise, it would propel the country to the top of the excise table of major European beer producing countries, while leaving only Germany among those which charge least in excise. Many fear that the French example could put pressure on the German government to do likewise.