Alcohol tax changes and the use of alcohol in Europe
Different motives in determining the level and structure of alcohol taxes lead to greatly varying alcohol excise duty levels. The aim of this paper is to look at alcohol excise duty rates in European Union (EU) and the mechanisms affecting them. Also the trends in alcohol prices and alcohol consumption will be discussed.Material concerning alcohol taxes and consumption comes from available statistics and published literature.This paper shows that despite many attempts the EU has not been able to harmonise alcohol excise duty rates in its member states. The importance of alcohol taxes as an alcohol control measure has decreased as the real value of alcohol excise duty rates has decreased in most EU countries during the last decades.In most European countries the share of alcohol taxes of the price of alcoholic beverages is quite low. Therefore, increasing alcohol excise duty rates would in most countries lead to increased alcohol tax revenues to the public sector. Consequently, increasing alcohol excise duty rates would serve both the fiscal and the health and social policy interests of the state.