Michael Ferris
Question:75 Mr. Ferris asked the Minister for Finance if he has responded to the opinion of the European Commission that the rates of excise duty on wine are discriminatory; and if he will make a statement on the matter. [26903/99]
Written Answers. - EU Directives.
I refer the Deputy to the replies which I gave to similar questions on this matter, namely, Question No. 21 on 10 November 1999 and Question No. 204 on 16 November 1999. The EU Commission has issued a reasoned opinion to Ireland, pursuant to article 226 of the EC Treaty, concerning directive 92/84/EEC on the approximation of the rates of excise duty on alcoholic beverages. The opinion argues that the present Irish alcohol tax regime is contrary to article 90 of the EU Treaty in that the Irish excise duty on wine is, in their view, discriminatory as a consequence of the lower excise imposed on beer.
We have responded to the Commission pointing out that Irish excise rates on alcohol broadly reflect alcoholic strength of products; the excise duty ratio between beer-wine is approximately 1:3, reflecting the relative alcoholic strength of beer and wine actually sold in Ireland, beer and wine are not in the sort of direct competition which the Commission maintain and are not marketed, distributed or sold in the same way, and the EU Commission permits a zero rate of excise on wine in many member states which tax beer. This in itself is a distortion which the Commission has not acted on.
It is a matter for the Commission to decide in the light of our response whether to pursue their case under legal procedures provided for in the treaty.