German taxmen to defer excise payments until end of 2020
Germany | The deferral of the beer excise is intended to give breweries greater financial scope during the coronavirus crisis. Breweries pay excise into their respective state coffers. It totalled at around EUR 650 million (USD 707 million) in 2019.
In order to improve breweries’ liquidity and protect jobs in the current situation, the national Ministry of Finance and the 16 state finance ministries on 6 April 2020 agreed that Germany’s 1,550 breweries can defer excise payments until the end of 2020. On average, excise on a crate (20 x 500 ml bottles) of 5 percent ABV beer amounts to EUR 0.94 (USD 1.03).
However, only breweries which mainly sell their beer in the off-premise will benefit from this relief measure. Others with strong on-premise sales aren’t so lucky. Plenty have already seen their turnover collapse as bars and restaurants are shut and all festivals have been cancelled. Even the Munich Octoberfest will not take place this year.
Germany is under lockdown until 3 May, although some measures will be gradually lifted even before then. It is assumed that bars and restaurants will be the last to see restrictions revoked.
