Vol. 500 No. 7
279 Mr. R. Bruton asked the Minister for Finance if an analysis has been made of the case for a staggered form of excise duty on beers in order to promote the development of small scale breweries; if his attention has been drawn to the existence of such a system operating in other EU states; and if he will make a statement on the matter. [5081/99]
As I have stated in replies to previous parliamentary questions on this issue on 9 and 16 February 1999, Irish excise duties do not discriminate between large and small breweries and the tax system is not a source of competitive distortion. In addition, the excise duty on beer was last increased in the January 1994 budget. So, in effect, all breweries have been advantaged by a relative decline in the share of its price which is attributed to tax. The share of price represented by total tax, including VAT, has declined from 37.6 per cent in 1994 to 35.6 per cent in 1998.
Under Article 4.1 of Council Directive 92/83/EEC, member states may apply reduced rates of duty, which may be differentiated in accordance with the annual production of the breweries concerned, to beer brewed by independent small breweries within the following limits: the reduced rates shall not be applied to undertakings producing more than 200,000 hectolitres of beer per year, the reduced rates, which may fall below the minimum rate, shall not be set more than 50 per cent below the standard national rate of excise duty.
I understand that Austria, Belgium, Germany, Denmark, Finland, Luxembourg and the Netherlands avail of the provisions of Article 4.1 of the directive.
Any proposed low or staggered regime would also have to apply to imports of beer produced in small breweries in other member states in accordance with the provisions Article 4.3 of Council Directive 92/83/EEC.
At present there are 13 micro breweries approved by the Revenue Commissioners. I believe that the overall package of measures announced in my recent budget, particularly in relation to income tax and corporation tax, will help to stimulate growth in employment in all sectors, including that of the brewing industry.
I have no plans to introduce a zero, a low or a staggered system of excise duty on beer brewed in small scale breweries.
