Consumption Tax Trends 2024

3. Selected Excise Duties in OECD Countries

3.1. Introduction

Although excise may be levied on a broad range of products, excise taxes on alcohol, tobacco and hydrocarbon oils in particular raise significant revenues for governments in all OECD countries. In recent decades, governments have increasingly used these taxes not only to raise revenue but also to influence customer behaviour where consumption of certain products is considered harmful to health or to the environment.

The main characteristics of excise duties, and their policy objectives as revenue raisers and tools to influence consumer behaviour, are largely shared amongst OECD countries. However, their rates and structure differ significantly, and it is therefore not straightforward to estimate the order of magnitude of the total tax burden on specific excisable goods. For example, standard excise rates on beer may be tempered by the application of reduced rates on small breweries. For tobacco products, different duty rates applicable to substitutes (cigarettes and rolling tobacco) may also blur the picture. Similarly, excise duties on road fuels reflect only a part of automotive taxation policy that also includes road tolls, taxes on registration and use of vehicles, taxes on insurance, etc.

This chapter provides an overview of the main differences in the structure of excise duties and illustrates their increasing use as an instrument to influence behaviour. It includes an overview of the key characteristics of excise duties and their revenue trends (Section 3.2). It then looks in some further detail at the excise rates structure for alcoholic beverages (Section 3.3) and tobacco products (Section 3.4). Data on fuel taxes are collected and published by the International Energy Agency (IEA, 2024[1])and are not included in this publication.

3.2. Key characteristics and revenue trends

3.2.1. Excise duties are typically targeted at specific product categories

Excise, unlike other general consumption taxes (incl. value added taxes - VAT), is levied only on specific goods. Although many products can be subject to excise, such as chocolate, coffee and orange juice, this chapter focuses on two product groups that are subject to excise in all OECD countries: alcoholic beverages and tobacco products.

Before looking at the key characteristics of these groups and their comparative treatment in OECD countries, it is useful to recall the following general characteristics of excise duties:

• Excise duties are generally calculated by reference to the weight, volume, strength, or quantity of the product, combined in some cases with the value, but sometimes on a value basis only.

• Excise duties normally become payable when the goods enter free circulation. Transfers of ownership of excisable goods can take place within a controlled warehousing environment or between registered operators without creating an excise charge.

• The excise system is characterised by small numbers of taxpayers that are active in the import, manufacturing, or trade in the targeted products.

Unlike VAT, which is collected through a staged collection process by all the stakeholders in the value chain until the stage of final consumption (see Chapter 2), excise duties are normally collected only once, from a registered operator, at the time the goods are released for consumption. In the European Union, the movement of excisable products between Member States takes place under a duty-suspension arrangement until the moment these products are released for free circulation. In this chapter the term “excise” is used to qualify the taxes having the characteristics above.

3.2.2. The level of revenues raised by excise duties and their social and economic impact depend on their structures.

The level of revenues raised by excise duties and their social and economic impact depend on the structure of these taxes. There are two main ways of levying excise duties on excisable products: ad valorem and specific taxes (also referred to as a “ad quantum” excise). Under an ad valorem excise, the tax is levied as a proportion of the product price (e.g. 20% of the selling price), and it is thus a tax on the value of sales. Under a specific excise, a fixed amount of tax is levied per unit of the product (e.g. USD 1 per litre), which means that this is a tax on the volume of sales. A specific excise requires a precise definition of the nature and characteristics of the tax base (e.g. a litre of beer at 3.5% alcohol by volume) while an ad valorem excise is simply based on the price of the excisable good. Specific excises remain unaffected by changes in the product characteristics that have not been defined as being relevant for the tax base, whereas ad valorem taxes bear on all the characteristics of the product that are reflected in the price.

The choice of the form of excise has therefore strong implications, notably for revenue administration, and depends on the policy objectives pursued. In general, specific excises facilitate the administration, as the determination of the tax amount does not require an assessment of the price or cost of the products. In addition, these taxes can discourage alcohol consumption for example by directly or indirectly targeting the alcohol content. However, specific excises impose a proportionally higher tax burden on cheaper products, require a clear definition of the tax base, and are insensitive to inflation, which affects tax revenues over time in real terms. Regular adjustments to rates are required to keep up with inflation, and although they seem a straightforward policy to adopt, many countries still suffer excise revenue losses due to non- or late indexation (Mario Mansour, 2023[2]).

There may be a case for a combination of specific and ad valorem excises if the tax is aimed at discouraging consumption of, or maximising revenue from, both high and low value products. Where there are large differences in prices of a product, a specific excise will be less likely to reduce demand for the high value product and will raise less revenue from it than an ad valorem excise as it is not linked to price. Higher income consumers who are more likely to consume high value products may be less responsive than low-income groups to the imposition of a given tax (although a specific excise may reduce the price differentials). If the aim is to influence behaviour, the imposition of a higher aggregate tax on these expensive products may be needed. To achieve this, an ad valorem excise can be combined with a specific excise, which is common in tobacco taxation (see Section 3.4 below). Setting the “optimal” balance between specific and ad valorem components of excise will depend on the products concerned, the market structure and the policy objective; hence, there is no optimal balance between the two taxes in absolute terms (KEEN, 1998[3]).

When assessing the impact of change to excise duty regimes, it is also important to note that excise is normally part of the VAT base, i.e. VAT is usually levied on the duty-paid value of the excise products. The revenue (and consumer price) impact of any changes in an excise tax will thus also be influenced by the level of the VAT rate on a given excisable product. In other words, the higher the rate of VAT, the greater the impact of (the increase in) excise duty on the consumer price.

Finally, illicit trade and opportunities for cross border shopping are other factors that might influence the revenue potential and the impact on consumption of excisable products.

All these factors play a role in governments’ policies depending on their policy objectives, whether these are to reduce consumption of specific products considered harmful to health, protecting certain sectors or small producers, increasing revenue, or a combination of these.

3.2.3. Excise revenue in OECD countries has seen a long decline

In the OECD countries, the relative share of excise duties in total tax revenue has seen a long decline between 1975, when they accounted for 10.5% on average, and 2022 when these taxes represented 5.6% of total tax revenue on average (see Annex Table 1.A.5). Although some large differences between OECD countries can be observed, with excise accounting from 0.7% of total tax revenue in New Zealand to 13.4% in Türkiye, the weight of excise duties ranges between 3% and 8% of total tax revenue in the majority of OECD countries (30 out of 38). These taxes account for less than 4% of total taxes in 11 OECD countries (Australia, Austria, Canada, Chile, Israel, Italy, Japan, New Zealand, Norway, Switzerland and the United States). They account for more than 9% of total tax revenue in four OECD countries (Greece, Latvia, Poland, and Türkiye) down from 14 OECD countries in 2010 (see also Chapter 1).

3.3. Alcoholic beverages

3.3.1. Taxing alcoholic beverages is part of public health policy

Although taxes on alcoholic beverages are amongst the oldest sources of governmental revenue, the growing importance of other forms of consumption taxes, in particular general consumption taxes such as VAT, has considerably reduced the relative share of these taxes in total taxation. However, public health policies are focusing on the taxation of alcoholic beverages as a means of influencing consumer behaviour and reducing their consumption.

Alcohol consumption is considered as one of the leading risk factors for population health worldwide. While historically predominantly used to raise revenue, taxes are generally considered as an effective tool to decrease the affordability of alcoholic beverages and reduce alcohol consumption and related harms. However, existing taxes on alcoholic beverages differ widely in terms of design and level and may not be optimised to pursue health goals (WHO, 2023[4]).

The World Health Organization recommends increasing taxes on alcoholic beverages as one of the most cost-effective policies to lower alcohol consumption levels in order to combat alcohol-related diseases (WHO, 2023[4]). From a public health perspective, it has been argued that the best tax structure links the taxation level to alcohol content, keeps pace with inflation and avoids substantial disparities between different beverage types (Colin Angus, 2019[5]). It is recognised, however, that the alcohol market creates employment in agriculture, industry, and distribution while generating tax revenue for governments. Public health measures to reduce harmful use of alcohol are therefore often balanced with other goals and considerations such as maintaining ancestral industries, safeguarding a free market and consumer choice, and ensuring government revenues.

The taxes’ structure and rates on alcoholic beverages differ across OECD countries, but also across types of product. Alcoholic beverages exist in a wide variety of forms and are produced from a wide range of fermented or distilled ingredients (grapes, apples, malt, rice, etc.). The Customs Combined Nomenclature Code (CN) provides a classification of alcoholic beverages to which excise categories are linked. The CN includes six main categories of alcoholic beverages: beer made from malt (code 22.03); wine of fresh grapes, including fortified wines (code 22.04); vermouth and other wine of fresh grapes flavoured with plants or aromatic substances (code 22.05); other fermented beverages (for example, cider, perry, mead), mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages (code 22.06); undenatured ethyl alcohol of an alcoholic strength of 80 % pure alcohol by volume (abv) or higher (code 22.07) and undenatured ethyl alcohol of an alcoholic strength of less than 80 % abv (code 22.08). There are inevitably subdivisions within each of these broad categories, but the use of the internationally accepted nomenclature enhances consistency and helps to avoid contradictory definitions in applying rates. Except otherwise mentioned in country notes, Annex 3.A Tables 3.A.1 and 3.A.2 respectively cover products under CN codes 22.03 and 22.04 while Table 3.A.3 covers products not included in these tables.

Given the long history of alcohol taxation, several methods and measures have been developed over time for assessing the alcoholic content of a product. The alcohol by volume (abv) is now the standard measure of the level of alcohol contained in an alcoholic beverage. It is defined as the number of litres of pure ethanol present in 100 litres of solution at 20 °C, expressed as a percentage of the total volume. Annex 3.A Tables 3.A.1 and 3.A.2 provide an overview of excise taxation of beer and wine, whereby the alcoholic content is expressed in percentage abv. In some countries, the excise taxation of beer calculates the alcoholic content in degrees Plato (measuring the density of beer wort in terms of percentage of extract by weight). To allow cross-country comparison, Annex Table 3.A.1 shows the estimated amounts of tax per percentage abv for these countries based on a conversion from the amounts of tax per degree Plato. There is no precise method to convert from degrees Plato to abv, but for tax purposes it is assumed that 2.5 degrees Plato is equivalent to 1% abv. The tax amounts per degree Plato have thus been multiplied by 2.5 to obtain the rates in degree abv for the relevant countries in Annex 3.A Table 3.A.1.

Member States of the European Union are subject to common provisions applicable to all products subject to excise duties under European Union law i.e. Council Directive (EU) 2020/262, which repeals and replaces Council Directive 2008/118/EC as of 13 February 2023. Excise duties on alcohol and alcoholic beverages are regulated by Council Directive 92/83/EEC complemented with Directive EU 2020/1151 and Directive 92/84/EEC setting out minimum rates that must be applied to each category of alcoholic beverage.

Annex 3.A Tables 3.A.1. and 3.A.2 below show that beer is generally taxed based on its alcohol content because it exists in a wide range of strengths. This method ensures that higher-alcohol beers are taxed more, reflecting their greater potential impact on health and social issues. On the other hand, wine is typically taxed per litre regardless of its alcohol content since this approach simplifies the taxation process for wine, which generally has a more consistent alcohol content compared to beer. Depending on the countries, historical, market and consumption patterns also influence this excise structure.

3.3.2. Excise rates on beer vary widely among OECD countries

Beer is taxed under both VAT and excise duties in all OECD countries. In addition, the European Directives have set a minimum excise duty on beer, that is EUR 1.87 per hectolitre/%abv, while providing for a possible reduction of excise for beer produced by small and independent breweries.

Annex 3.A Table 3.A.1 illustrates the complexity of the computation of excise duties in many instances. The existence of differing subcategories and specific rates (e.g. for low-alcohol products and for small breweries) and calculations based on both the value and the nature of the product, make it challenging to estimate the precise total excise tax burden at the consumer level. This Table also illustrates the large differences of taxation levels between OECD countries, with the standard excise rate on beer varying from less than USD 5 per hl/% abv (Czechia, Germany, Luxembourg, Slovak Republic) up to more than USD 15 (Finland, Ireland, Israel, New Zealand and Sweden) and the highest levels being observed in Finland (USD 39.35) and Israel (USD 71.12). About two thirds of OECD countries (25 out of 38) apply reduced excise rates to small breweries, with a progressive increase in the tax rate according to their annual production in many cases. Country notes to Annex 3.A Table 3.A.1 illustrate the wide diversity of these tax regimes. Four OECD countries do not apply any specific excise to beer but only ad valorem taxes: Chile, Colombia, Korea, and Mexico.

All OECD countries apply the standard VAT rate to beer, except Iceland, which applies the reduced rate of 11%, and the United States where there is no VAT but where sales taxes are levied at the subnational level.

3.3.3. Excise tax rates on wine vary from zero to more than USD 6 per litre in OECD countries

Annex 3.A Table 3.A.2 considers two main categories of wine: still wine and sparkling wine. In addition, it shows the difference of tax levels between wine and “low-alcohol wine” as defined by countries (see below). Excise rates on wine vary widely across OECD countries from zero in 13 countries i.e. one third of OECD countries (Austria, Czechia, Germany, Greece, Hungary, Israel, Italy, Luxembourg, Portugal, Slovak Republic, Slovenia, Spain, and Switzerland) up to more than USD 4 per litre in Finland and Ireland, and almost USD 6 per litre in Norway. In 9 OECD countries, sparkling wine is subject to a higher excise rate than still wine (Belgium, Czechia, Denmark, France, Hungary, Ireland, Slovak Republic, Türkiye, and the United States). Five OECD countries do not apply any specific excise to wine but only ad valorem taxes: Australia, Chile, Colombia, Korea, and Mexico.

Although the structure of excise rates on wine is generally not directly proportional to the alcohol content of the product (unlike beer), 12 countries apply reduced (or zero) rates to ‘low alcohol’ wine, although the alcohol content at which wines fall into this category varies widely from country to country, i.e.: Belgium (8. 5%abv), Denmark (15%abv), Estonia (6%abv), Finland (1.2%abv), France (1.2%abv), Germany (1.2%abv), Ireland (5.5%abv), Japan (10%abv), Lithuania (8. 5%abv), Luxembourg (13%abv), Netherlands (1.2%abv), Norway (12%abv), Slovak Republic (8.5%abv), Spain (1.2%abv), Sweden (2.25%abv), United Kingdom (1.2%abv) and United States (16%abv). Seven countries apply graduated rates of excise duty according to the quantity of alcohol contained in the wine: Canada, Denmark, Finland, Germany, Spain, the United Kingdom, and the United States. Two countries (Costa Rica and Iceland) apply excise duty rates directly proportional to the alcohol content of the product.

All OECD countries apply the standard VAT rate to wine, except Colombia, Luxembourg and Portugal that apply reduced VAT rates of respectively 5%, 14% and 13% to still wine and the United States where there is no VAT but rather retail sales taxes at the subnational level.

3.3.4. No zero-rates are applied to other alcoholic beverages than beer and wine

For alcoholic beverages other than beer and wine (Annex 3.A Table 3.A.3), excise duty rates also vary across OECD countries, but to a lesser extent as there are no zero excise rates. These rates range from less than USD 15 per litre of absolute alcohol (Austria, Canada, Czechia, Hungary, Italy, Luxembourg, Slovak Republic, Spain and the United States) to up to USD 95 per litre of absolute alcohol in Norway and USD 128 in Iceland. The only countries to apply a reduced VAT rate to these alcoholic beverages are Colombia (5%) and Iceland (11%). The United States does not apply a federal VAT but retail sales taxes are levied at the subnational level.

Four OECD countries do not apply any specific excise to these alcoholic beverages but only ad valorem taxes (Chile, Colombia, Korea and Mexico). Country notes to Annex 3.A Table 3.A.3 provide a description of the specific regimes applied in OECD countries.

3.4. Tobacco products

3.4.1. Tobacco taxes have long been an attractive source of revenue for governments, but they are increasingly being used as part of public health policy.

Historically, as for alcohol taxation, the primary motivation for tobacco taxation was the raising of government revenue. Nearly all OECD countries have taxed tobacco products for many decades and even for centuries in some cases. The significant tobacco consumption and the relatively low elasticity of demand for tobacco products (i.e. the less than proportionate response of tobacco product consumption to a moderate price increase) along with the small number of producers made these products a particularly attractive target for excise and other taxation.

Over time, the clear evidence of the negative health consequences of tobacco use have turned tobacco taxation increasingly into a tool to reduce tobacco consumption and its negative health consequences. The World Health Organisation (WHO) provides economic evidence that increased taxes that are passed on to tobacco users effectively reduce tobacco consumption. It considers that, of the different types of tax levied on tobacco products, excise taxes are the most effective at raising prices and that simple tax structures are easiest to administer. Complex structures and tiered excise taxes should be avoided to diminish incentives for producers to price tobacco products in ways that can undermine the health and revenue impact of tobacco taxes. It shows that tobacco taxation is highly cost-effective, combining the potential for considerable impact on tobacco consumption with a low implementation cost. Returns and economic benefits from tobacco taxation have proven to be several times higher than the cost of these measures (WHO, 2023[6]).

Box 3.1. WHO Framework Convention on Tobacco Control (FCTC) and MPOWER policy package

The World Health Organisation (WHO) FCTC was developed in 2005 to tackle some of the causes of the tobacco epidemic, including trade liberalisation, direct foreign investment, tobacco advertising, promotion and sponsorship and illicit trade in tobacco products. It is the first international public health treaty negotiated under WHO auspices and contains guidelines and requirements for the implementation of the most cost-effective tobacco control measures available necessary for reducing the tobacco consumption.

Raising tobacco taxes is one of the key measures that Parties to the FCTC are required to implement (Article 6) along with protection from second-hand smoke in all indoor workplaces, public places and public transportation (Article 8); large graphic health warnings on the packaging of tobacco products (Article 11); and a comprehensive ban on tobacco advertising, sponsorship, and promotion (Article 13).

While the FCTC guidelines provide the foundation for countries to implement and manage tobacco control, the MPOWER policy package was developed in 2007 to provide the tools necessary for action on tobacco control. The MPOWER measures are used to assist in the country-level implementation of effective interventions to reduce the demand for tobacco. The acronym represents the following: Monitoring tobacco use and prevention policies; Protecting people from tobacco smoke; Offer help to quit tobacco use; Warn about the dangers of tobacco; Enforce bans on tobacco advertising, promotion, and sponsorship; and Raise taxes on tobacco.

As part of the “Raise tobacco taxes” guidelines, the WHO notably recommends that governments monitor tobacco tax rates and prices relative to real income and significantly raise tax rates at regular intervals to ensure that tobacco products do not become more affordable.

As of August 2024, 183 parties have ratified the FCTC treaty, including all OECD member countries.

Source: WHO 2021 global progress report on implementation of the WHO Framework Convention on Tobacco Control (World Health Organisation, 2021[7]); WHO report on the global tobacco epidemic (World Health Organization, 2021[8]); OECD Health at Glance 2021 (OECD, 2021[9]);WHO Framework Convention on Tobacco Control Parties.

As with alcohol, tobacco products are subdivided into a number of categories (see Annex 3.A Table 3.A.4) i.e. cigarettes, cigars, and rolling tobacco. New tobacco products have also emerged such as Heated Tobacco Products (HTP), and Electronic Nicotine Delivery Systems (ENDS), which may be subject to specific tax rates (but are outside the scope of this publication).

Unlike excises on alcoholic beverages, which are most often specific, the majority of countries use a combination of specific and ad valorem elements to calculate excise on tobacco products. Annex 3.A Table 3.A.4 illustrates the wide disparity in the tax rates applied by different OECD countries. This is the case in the United States, for example, where local excise duties on cigarettes (in addition to federal duties) range from USD 0.17 per pack of 20 cigarettes in Missouri to USD 4.50 in the District of Columbia. The Member States of the European Union are subject to common provisions applicable to all products subject to excise duty under European Union law, namely Council Directive (EU) 2020/262, which repeals and replaces Council Directive 2008/118/EC with effect from 13 February 2023. Directive 2011/64/EU also requires Member States to levy a minimum rate of excise duties on cigarettes consisting of (1) a specific component of between 7.5% and 76.5% of the total tax burden (TTB) - expressed as a fixed amount per 1000 cigarettes - and (2) an ad valorem component - expressed as a percentage of the maximum retail selling price. In addition, the overall excise rate must be at least EUR 90 per 1000 cigarettes and at least 60% of the weighted average retail selling price (Member States that apply excise duty of EUR 115 or more, however, do not need to comply with the 60% criterion above). Directive 2011/64/EU also sets down minimum excise duty rates for manufactured tobacco other than cigarettes.

Looking in particular at the structure and level of excise duties on the most widely consumed product, cigarettes, it can be seen that all OECD countries apply excise duties to cigarettes, and almost all of them in the form of a combination of specific and ad valorem duties, with the exception of Australia, Canada, Iceland, Japan, New Zealand, and Norway, which apply only a specific excise duty. Twenty countries (Austria, Belgium, Czechia, Estonia, Finland, France, Germany, Hungary, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Switzerland, Türkiye, and the United Kingdom) mentioned the application of a minimum amount of total excise duty (specific and ad valorem), which offers protection against the undervaluation of products. It also forces prices to rise, since the price will not be lower than the tax paid (this category does not apply to countries where only a specific excise is applicable).

It should be noted that the rates or amounts of each tax (ad valorem or specific excise duty, VAT or other duties) by type of tobacco product, as shown in Annex 3.A Table 3.A.4, do not in themselves make it possible to assess the entire tax burden on these products. Ad valorem excise duties can be calculated on different bases (producer price, import price, retail price). When the structure of excise duties is mixed (the excise duty comprising an ad valorem component and a specific component), a high ad valorem tax applied to a category of products may be counterbalanced by a low specific excise duty (or vice versa). The cumulative effect of VAT and excise duties also needs to be assessed. The World Health Organisation (for 180 countries (WHO, 2023[6])) and the European Union (for its 27 members -plus the United Kingdom until 2020- - European Commission ‘Taxes in Europe Database’ accessed in August 2024) calculate the total amount of tax as a proportion of the price of a packet of 20 cigarettes. These data show a very wide disparity between OECD countries, from less than 60% of the total selling price in Costa Rica, the United States, Norway, Switzerland and Japan to more than 80% in Belgium, Chile, Denmark, Estonia, Finland, France, Greece, Ireland, Lithuania, Latvia, the Netherlands, New Zealand, Poland, Portugal, Slovenia, Türkiye and the United Kingdom.

References

[10] Brys, B. et al. (2016), “Tax Design for Inclusive Economic Growth”, OECD Taxation Working Papers, No. 26, OECD Publishing, Paris, https://doi.org/10.1787/5jlv74ggk0g7-en.

[5] Colin Angus, J. (2019), “Comparing alcohol taxation throughout the European Union”, Addiction notes.

[13] Federation of Tax Administrators (2022), State excise tax rates on cigarettes.

[1] IEA (2024), International Energy Agency, https://www.iea.org/data-and-statistics.

[3] KEEN, M. (1998), “The Balance between Specific and Ad Valorem Taxation”, Fiscal Studies, Vol. 19/1, pp. 1-37, https://doi.org/10.1111/j.1475-5890.1998.tb00274.x.

[2] Mario Mansour, P. (2023), How to Design Excise Taxes on Alcoholic Beverages, International Monetary Fund, Washington.

[9] OECD (2021), Health at a Glance 2021: OECD Indicators, OECD Publishing, Paris, https://doi.org/10.1787/ae3016b9-en.

[4] WHO (2023), Global report on the use of alcohol taxes, World Health Organization, Geneva.

[6] WHO (2023), WHO Report on the tobacco epidemic, World Health Organisation, Geneva.

[12] WHO (ed.) (2021), WHO Technical manual on tobacco tax policy and administration, WHO, Geneva.

[11] WHO (2010), Global strategy to reduce the harmful use of alcohol, World Health Organisation.

[7] World Health Organisation (2021), Global progress report on implementation of the WHO Framework Convention on Tobacco Control.

[8] World Health Organization (2021), WHO report on the global tobacco epidemic 2021 web annex IX, https://apps.who.int/iris/handle/10665/343468.

Annex 3.A. Excise duty and vehicle tax rates

Annex Table 3.A.1. Taxation of Beer

Country	Currency	Excise rate per hectolitre per % abv1		Lower excise rates for small independent breweries Excise per hectolitre per % abv1			Excise duty on low alcohol beer Excise per hectolitre of product2		VAT rate	Progressive excise rate by strength3
		National currency	USD	Annual production (hl)4	National currency	USD	National currency	USD	%
Australia*	AUD	Country note		Country note			Country note		10.0	Yes
Austria*	EUR	5.00	5.43	≤12 500	3.00	3.26	0.00	0.00	20.0	No
				≤ 25 000	3.50	3.80			20.0
				≤ 37 500	4.00	4.35			20.0
				≤ 50 000	4.50	4.89			20.0
Belgium*	EUR	5.01	5.45	≤ 12 500	4.36	4.74	0.00	0.00	21.0	No
				≤ 25 000	4.50	4.89			21.0
				≤ 50 000	4.65	5.05			21.0
				≤ 75 000	4.79	5.21			21.0
				≤ 200 000	4.94	5.37			21.0
Canada*	CAD	Country note		Country note	Country note		Country note		5.0/13.0 15.0	Yes
Colombia*	COP	Country note		Country note			Country note		19.0	No
Costa Rica	CRC	Country note		Country note			Country note		13.0	Yes
Czechia*	CZK	80.00	3.60	≤ 10 000	40.00	1.80	0.00	0.00	21.0	No
				≤ 50 000	48.00	2.16			21.0
				≤ 100 000	56.00	2.52			21.0
				≤ 150 000	64.00	2.88			21.0
				≤ 200 000	72.00	3.24			21.0
Denmark*	DKK	48.74	7.07	≤ 3 700	Country note		0.00	0.00	25.0	No
				≤ 20 000	Country note				25.0
				≤ 200 000	Country note				25.0
Estonia*	EUR	13.34	14.50	≤ 15 000	6.67	7.25	0.00	0.00	22.0	No
Finland*	EUR	36.20	39.35	≤ 5 000	18.10	19.67	0.00/28.35	0.00 – 30.81	24.0	No
				≤ 30 000	25.34	27.54			24.0
				≤ 55 000	28.96	31.48			24.0
				≤ 100 000	32.58	35.41			24.0
France*	EUR	7.96	8.65	≤ 200 000	3.98	4.33	3.98	4.33	20.0	No
Germany*	EUR	1.97	2.14	≤ 5 000	1.10	1.20	0.00	0.00	19.0	No
				≤ 10 000	1.32	1.43			19.0
				≤ 20 000	1.54	1.67			19.0
				≤ 40 000	1.65	1.79			19.0
Greece*	EUR	12.50	13.59	≤ 200 000	6.25	6.79	0.00	0.00	24.0	No
Hungary*	HUF	1800.00	5.10	≤ 200 000	900.00	2.55	0.00	0.00	27.0	No
Iceland*	ISK	Country note		≤ 2 000	Country note	_	0.00	0.00	11.0	Yes
Ireland*	EUR	22.55	24.51	≤ 75 000	Country note		0.00 Country note	0.00	23.0	No
Israel*	ILS	261.00	71.12	_	_	_	Country note		17.0	No
Italy*	EUR	7.475	8.42	≤ 10 000	4.485	4.88	0.00 Country note	0.00	22.0	No
Japan*	JPY	Country note			Country note		_	_	10.0	No
Korea*	KRW	Country note					Country note		10.0	No
Latvia*	EUR	8.20	8.91	≤ 10 000	4.10	4.46	0.00	0.00	21.0	No
Lithuania*	EUR	9.46	10.28	≤ 10 000	4.73	5.14	0.00	0.00	21.0	No
Luxembourg*	EUR	1.98	2.15	≤ 50 000	0.99	1.08	0.00	0.00	17.0	No
				≤ 200 000	1.12	1.22			17.0
Mexico*	MXN	26.50%					Country note	_	16.0	Yes
Netherlands*	EUR	8.12	8.83	≤ 200 000	7.51	8.16	0.00	0.00	21.0	Yes
New Zealand*	NZD	29.05	17.82				Country note	_	15.0	No
Norway*	NOK	Country note					Country note		25.0	Yes
Poland*	PLN	23.58	5.61	≤ 200 000	Country note		0.00	0.00	23.0	No
Portugal*	EUR	Country note		≤ 200 000	Country note		0.00 Country note		23.0	No
Slovak Republic*	EUR	3.59	3.90	≤ 200 000	2.65	2.88	0.00	0.00	20.0	No
Slovenia*	EUR	12.10	13.15	≤ 20 000	6.05	6.58	0.00	0.00	22.0	No
Spain*	EUR	Country note		_	_	_	0.00 Country note	0.00	21.0	No
Sweden*	SEK	228.00	23.57	_	_	_	0.00	0.00	25.0	No
Switzerland*	CHF	Country note		≤ 55 000	Country note		Country note		8.1	Yes
Türkiye*	TRY	777.71	13.64	_	_	_	0.00	0.00	20.0	No
United Kingdom*	GBP	Country note			Country note				20.0	Yes
United States*	USD	Country note		≤ 2 347 000	Country note		_	_		No

Notes

*See Country notes

Conversion of national currency in USD: conversion rates are average market rates (2023). Source: https://data-explorer.oecd.org

Beer as defined in the WCO Customs nomenclature under 2203

1. % abv = percentage of pure alcohol by volume at 20°C. In some countries, the excise rate on beer is calculated per hectolitre per degree Plato. For ease of reading, all amounts have been converted in % abv. There is no precise conversion between degrees Plato and % abv but for tax purposes it is often assumed that 1% abv is equivalent to 2.5 degrees Plato. As a result, tax rates expressed in degree Plato have been multiplied by 2.5 to obtain the % abv.

2. Beer with an alcoholic degree below a certain % alcohol by volume is either taxed at a lower rate or untaxed in some jurisdictions. Some (like the EU) do not consider beer with a low alcoholic content (e.g. less than 0.5% abv. In the EU) a beer and it is not subject to excise duty.

3. Progressive excise rate by strength covers situations where the excise duty per hectolitre per % abv is higher for products with a higher %abv.

4. The annual production in hectolitre must be understood in tranches e.g. “≤ 10 000” in a first row and “≤ 20 000” in the row below must be understood as “production up to 10 000” and “production between 10 000 and 20 000”.

Source: National delegates; position as of 1 January 2024

Annex Box 3.A.1. Country notes to Annex Table 3.A.1. Taxation of Beer

Australia. The excise rates for beer in individual containers of less than 8 litres; or individual containers of at least 8 litres but not exceeding 48 litres and not designed to connect to a pressurised gas delivery system or pump delivery system are: AUD 51.63 per litre of alcohol where the alcohol volume does not exceed 3%, AUD 60.12 where the alcohol volume exceeds 3% but does not exceed 3.5%, and AUD 60.12 where the alcohol volume exceeds 3.5%. The excise rates for beer in individual containers exceeding 48 litres; or individual containers of at least 8 litres but not exceeding 48 litres and designed to connect to a pressurised gas delivery system or pump delivery system are: AUD 10.32 per litre of alcohol where the alcohol volume does not exceed 3%, AUD 32.33 where the alcohol volume exceeds 3% but does not exceed 3.5%, and AUD 42.37 where the alcohol volume exceeds 3.5%. Lower rates also apply for beer produced for non-commercial purposes using commercial facilities or equipment, being AUD 3.63 per litre of alcohol for beer where the alcohol volume does not exceed 3% and 3.65 per litre of alcohol for beer where the alcohol volume is over 3%. Excise duty on beer is calculated on the amount by which the alcohol content exceeds 1.15% by volume of alcohol. Beer that does not contain more than 1.15% by volume of alcohol is not subject to excise duty. These rates are indexed to inflation (Consumer Price Index) in February and August each year. Eligible manufacturers can apply a remission (i.e. not required to pay) of 100% of the excise duty payable up to a maximum of AUD 350,000 per financial year.

Austria. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Belgium. Beer with an alcoholic content less than 0.5 % vol. is free of excise on beer (see European Union country note below) but is subject to a national excise.

Canada. Excise duty rates for beer are imposed per hectolitre of product (not per hectolitre per degree alcohol). As of 1 January 2024, federal excise duty rates, on all beer or malt liquor containing: (1) more than 2.5% abv, CAD 35.52 per hectolitre; (2) more than 1.2% abv but not more than 2.5% abv, CAD 17.76 per hectolitre; (3) not more than 1.2% abv, CAD 2.948 per hectolitre. Reduced rates of excise duty apply on the first 75 000 hectolitres of beer and malt liquor brewed in Canada per year by licensed brewers: the aforementioned rates are reduced by (1) 90%, on the first 2 000 hectolitres, (2) 80%, on the next 3 000 hectolitres, (3) 60%, on the next 10 000 hectolitres, (4) 30%, on the next 35 000 hectolitres, and (4) 15%, on the next 25 000 hectolitres. Automatic inflationary adjustments on duty rates for beer occur annually on April 1. As of April 1, 2023, a temporary cap on the inflation adjustment for excise duties on beer, wine, and spirits at two per cent, for one year, was implemented. On March 9, 2024, a proposed two-year extension of the two per cent cap on the annual alcohol excise duty inflation adjustment, and a 50 per cent reduction for two years on excise duty rates for the first 15,000 hectolitres of beer brewed in Canada, effective April 1, 2024, was announced. Provincial and territorial governments also charge taxes and mark-ups on beer.

Chile. The sale of alcoholic beverages (including wine, beer, distilled alcoholic beverages and other alcoholic beverages) is subject to 19% VAT and also to a surtax on the sale or import of alcoholic beverages. The rate applied to beer is of 20.5% and does not depend upon the degree of alcohol that the beer contains. The tax is applied to the VAT base, that is the sale`s price (excluding VAT itself) and levies sales made between wholesale dealers. For sales between wholesalers, the tax paid to the vendor is creditable against the tax applied on sales at each stage of the value chain (including imports) until the last sale to the final retailer. Retail commerce that sells to other vendors, can credit the surtax paid against output VAT proportionality. The sale from the retailer to the final consumer is not subject to the surtax and the retailer cannot deduct the input tax.

Colombia. The beer consumption tax is a national tax, collected by the territories (“Departmentos”) on the products consumed in their territory. National and imported beers are subject to the consumption tax of 48% on the retail price without taxes. That price doesn’t include the value of packages and bottles. It is a monophasic tax paid at the moment of the import or exit of factory. The mix of beer with non-alcoholic beverages (refajos) is levied at 20%. Non-alcoholic beer (with an alcoholic content less than 2.5% vol.) is not subject to tax.

Costa Rica. There is a specific tax for each millilitre of absolute alcohol contained in any domestically produced or imported alcoholic beverage, regardless of its presentation, according to the concentration of alcohol by volume. Tax rates are defined by law and quarterly updated according to the variation of the consumer price index. Tax rates varies according the abv for each liquor and beer following these ranges: from 0 up to15%, between 15% and up to 30%, and above 30 %.

Czechia. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Denmark. Lower rates on small independent breweries: production ≤ 3 700 hl reduce the excise duty by 50 percent; production > 3 700 but ≤ 20 000 hl reduce the excise duty in percent that equals to 168 607 divided by the produced amount in hl plus 4.43; production > 20 000 but ≤ 200 000 hl reduce the excise duty in percent that equals to 14.29 minus produced amount in hl divided by 14 003. Beer with alcohol content less than 2.8% vol. is free of excise tax.

Estonia. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Finland. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below). The excise rate for beer with an alcoholic content 0.5-3.5 % vol. is 28.35 per hectolitre per % abv. Similar reductions for small breweries as for beer with alcoholic content more than 3.5 % vol.: the aforementioned rate is reduced by 50%, on the first 5 000 hectolitres, 30%, on the next 25 000 hectolitres, 20%, on the next 25 000 hectolitres and 10%, on the next 45 000 hectolitres. Small breweries with maximum production of 200 000 hectolitres are entitled to the reduced rates.

France. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Germany. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Greece. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Hungary. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below). Flavoured beers are subject to a HUF 33/litre public health product tax for beer with sugar content exceeding 5 grams of sugar/100 millilitres and HUF 10/litre public health product tax for beer with a sugar content not exceeding 5 grams sugar/100 millilitres.

Iceland. The duty in Iceland is ISK 147.15 per centilitre of alcohol per litre minus 2.25 centilitres. For example, one litre of beer that has 6% abv has 6 centilitres alcohol per litre. Therefore, the duty for one litre of beer that contains 6% abv would be as follows: (6-2.25) * 147.15 = ISK 551.8 per litre. As a result of this formula, beer with less than 2.25% abv is not taxed. From 1 January 2024 the excise duty on beer may be reduced by 50% if the beer is produced in a small and independent brewery. A brewery is considered small if its total annual production of beer is less than 500 000 litres. The brewery must also meet certain conditions of independence. For each brewery the 50% discount is limited per year to a total of 550 000 centilitres of abv. from which the duty is calculated. That is equivalent to 200 000 litres (2 000 hl.) of beer containing 5% abv.

Ireland. There is remission or repayment of 50% alcohol products tax (excise duty) on beer brewed in independent small breweries producing up to 75 000 hl a year. Budget 2023 increased the qualifying production level from 50 000 to 75 000 hectolitres but maintained the current 30 000 hectolitre limit for remission/repayment of APT. For low alcohol beer, the rate is 0.00 (beer ≤ 1.2% abv) and EUR 11.27 (beer > 1.2% abv up to 2.8% abv). Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Israel. The duty was set as ILS 261 on 1 January 2024. The amount is updated each year according to the change in the Consumer Price Index (CPI). There is no duty on beer under 2% alcohol (or under 3.8% alcohol if marketed in reusable bottles).

Italy. Starting from 1 January 2024, the standard rate of excise duty is EUR 2.99 per hectolitre and per degree Plato. With regard to small independent breweries with annual production not exceeding 10 000 hectolitres, the excise rate is reduced by 40 percent (in comparison to the standard rate). Beer with actual alcoholic strength not exceeding 0.5 percent by volume is not subject to excise duty.

Japan. Reduced rates for small brewers (whose taxable volume of liquor in the previous fiscal year shall be up to 100 000 hl) apply for the first 2 000 hl of beer per the fiscal year at the following rates: (a) if the taxable volume of beer in the previous fiscal year is less than or equal to 10 000 hl, 85% of the normal rate; (b) if the taxable volume of beer in the previous fiscal year is more than 10 000 hl but less than or equal to 13 000 hl, 92.5% of the normal rate (temporary measure).

Reference information No1 (FY2023 Liquor tax reform). From 1 April 2024, the normal rate is JPY 18 100/hl. However, depending on the accumulated amount of liquor tax for the current fiscal year, reduced rates for small brewers (those who are willing to strengthen their management bases and whose taxable volume for the previous fiscal year was 30 000 hl or less (excluding corporations with capital exceeding JPY 300 million and more than 300 full-time employees )) will be applied at (a) if the accumulated amount of liquor tax is JPY 50 million or less, 80% of the normal rate, (b) if the accumulated amount of liquor tax exceeds JPY 50 million and is JPY 80 million or less, 90% of the normal rate, (c) if the accumulated amount of liquor tax exceeds JPY 80 million and is JPY 100 million or less, 95% of the normal rate (temporary measure).The current measures will be abolished, but transitional measures will be taken to ensure a smooth transition to the new measures.

Reference information No.2. (FY2017 Liquor tax reform). From 1 October 2020, the excise rates for liquor were changed in order to restore fairness in tax burden between different types of beer. Specifically, the excise rates for beer and beer-like liquors will be unified at JPY 15 500 per hl in October 2026 (the revision will be implemented in three stages).

Korea. The tax rate of beer is KRW 885 700 per kilolitre (as for beer sold in the container sized 8 litre or bigger that uses a separate dispensing tap before 31 December 2026, KRW 708 500 of tax rate applied).

Latvia. Starting from 1 March 2024 the excise per hectolitre per % abv is EUR 9.0; excise per hectolitre per % abv for small independent breweries is EUR 4.5 (not less than EUR 16.7 per hectolitre of beer). The reduced rate for small independent breweries (annual production up to 50 000 hl) is applied for the first produced 10 000 hl of beer. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Lithuania. Starting from 1 January 2022 the reduced rate is applied for small independent breweries (annual production up to 80 000 hl) for the first produced 10 000 hl of beer. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Luxembourg. Additional rate for alcopops: EUR 600 per hectolitre. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Mexico. The rates apply to the value of the goods as follows: 26.5% for beer and other alcoholic beverages up to 14° Gay-Lussac (GL); 30% for beverages above 14° G.L. and up to 20° G.L.; 53% for beverages above 20° G.L.

Netherlands. Excise duty rates are as mentioned in table 3.1. However, the minimum amount of excise duty per hectolitre is EUR 26,13. Beer with a maximum alcohol content of 0.5% vol. is subject to a consumer tax of EUR 26.13 per hectolitre and a VAT rate of 9%. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

New Zealand. The excise rate for beer containing more than 2.5% abv is NZD 35.451 per litre of alcohol in finished product. The rate for beer containing more than 1.15% abv but not more than 2.5% abv is NZD 0.53170 per litre of product. There is no excise duty on beer containing less than 1.15% abv.

Norway. Excise rates are as follows per hectolitre of product: a) 0.0-0.7% abv: NOK 0; b) 0.7-2.7% abv: NOK 353; c) 2.7-3.7% abv: NOK 1 328; d) 3.7-4.7% abv: NOK 2299. The excise rate for beer with an alcoholic content of more than 4.7% abv is NOK 514 per degree of alcohol and hectolitre.

Poland. Exemptions from excise for small breweries: 1) production ≤ 200 000 hl a year – 50% of the amount of excise duty calculated with the standard rate of excise duty on beer; the above rules also apply to producers who cooperate with each other; 2) intra-Community purchase or import of beer by entities that meet the conditions specified in law – 50% of the amount of excise duty calculated with the standard rate of excise duty on beer. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Portugal. Excise rates for beer are as follows per hectolitre of product: (a) >0.5. ≤ 1.2% abv EUR 9.64; (b) >1.2 ≤2.8% abv EUR 12.06; (c) > 2.8 ≤ 4.4% abv EUR 19.29; (d) > 4.4 ≤ 5.2% abv EUR 24.13; (e) > 5.2 ≤ 6% abv EUR 28.95; (f) >6% abv EUR 33.85 (rates as of 01 January 2024). Rates for small breweries (annual production up to 200 000 hl) are 50% of the normal rates. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Slovak Republic. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Slovenia. Reduced rate for small breweries (yearly production ≤ 20 000 hl) is 50% of the standard rate of excise duty for beer: EUR 6.05 per hl per % abv. Exemption for natural person use of beer if yearly production is less than 500 l. Beer with an alcoholic content less than 0.5 % vol. is free of excise (see European Union country note below).

Spain. Excise rate according to strength is: beer with less than 1.2% abv is free of excise; beer between 1.2% and 2.8% abv is EUR 2.75/hl; beer with more than 2.8% abv and 4.4%abv is EUR 7.48/hl; beer with more than 4.4%abv and 6%abv is EUR 9.96/hl; beer with more than 6%abv and 7.6%abv is EUR 13.56/hl; beer with more than 7.6%abv is EUR 0.91/hl and per degree Plato. There is no tax on Beer in Ceuta and Melilla (Spanish cities situated in the North of Africa).

Sweden. The excise duty for beer with an alcoholic content below 2.8 % abv is SEK 0.

Switzerland. Rates per hectolitre: light beer (up to 10.0° Plato): CHF 16.88, regular and special beer (10.1 to 14.0° Plato): CHF 25.32, strong beer (from 14.1° Plato): CHF 33.76. For small breweries producing less than 55 000hl per year the tax rate is progressively reduced according to the volume of production up to 40 % reduction (annual production of max. 15 000 hl). Beer with more than 15 % vol. alcohol is taxed as an alcoholic beverage (CHF 2900 per hectolitre of absolute alcohol). Beer with an alcoholic content of less than 0.5 % vol. is free of excise.

Türkiye. The minimum tax amount is TL 777.71 per hectolitre/degree. If the amount computed according to the tax rate (63%) is lower than the minimum tax amount, the minimum tax amount is paid.

United Kingdom. Beer with an alcoholic content below 1.2% abv is free of excise duty. All other beer products attract rates based on abv per hectolitre of pure alcohol in the product as follows; between 1.3% and 3.4% abv is GBP 927.00; between 3.5% and 8.4% abv is GBP 2101.00; between 8.5% and 22% abv is GBP 2850.00 and stronger than 22% abv is GBP 3164.00. For beer, two forms of reduced duty rates can apply. Firstly, reduced duty rates for draught beer products below 8.5% abv if the product is packaged in eligible draught containers that are designed for connection to a pump system or pressurised drinks taps. Draught beer rates as follows; below 3.5% abv per hectolitre of pure alcohol in the product is GBP 842.00; between 3.5% and 8.4% abv per hectolitre of pure alcohol is GBP 1908.00. Secondly, beer with below 8.5% abv and made by producers who, in the previous production year made 4,500 hectolitres or less of pure alcohol, may be entitled to the Small Producer Relief (SPR). The amount of SPR depends on the alcoholic product produced and quantity of pure alcohol in a production year. Guidance and an SPR calculator are available on Gov.UK. Additional eligibility requirements apply to small producer products entering Northern Ireland. The above rates were introduced in the UK on 1 August 2023.

United States. The weighted average Federal and State excise tax rate is USD 21 per hectolitre of product. The Federal tax is USD 16.00 per barrel (31 gallons) for the first 6 million barrels of beer and then USD 18.00 per barrel for each barrel after. 1 barrel = 1.1735 hectolitres. Small domestic brewers who produce less than 2 million barrels of beer per calendar year pay USD 3.50 in federal tax per barrel on the first 60 000 barrels and then USD 16.00 for each barrel over 60 000. . State excise tax rates range from USD 0.50 to USD 33.99 per hectolitre. There is no progressive rate structure based on alcohol content and no Federal VAT.

Source: National delegates.

Annex Table 3.A.2. Taxation of Wine

Country	Currency	Still wine1			Low-alcohol3 still wine			Sparkling wine2			Low-alcohol3 sparkling wine
		Excise per hectolitre of product		VAT	Excise per hectolitre of product		VAT	Excise per hectolitre of product		VAT	Excise per hectolitre of product		VAT
		National currency	USD	%	National currency	USD	%	National currency	USD	%	National currency	USD	%
Australia*	AUD	Country note		10.00	Country note		10.00	Country note	-	10.00	Country note		10.00
Austria	EUR	0.00	0.00	20.00	0.00	0.00	20.00	0.00	0.00	20.00	0.00	0.00	20.00
Belgium	EUR	74.91	81.42	21.00	23.91	25.99	21.00	256.32	278.61	21.00	23.91	25.99	21.00
Canada*	CAD	70.20	52.00	5.0/13.0 15.0	Country note	-	5.0/13.0 15.0	70.20	52.00	5.0/13.0 15.0	Country note	-	5.0/13.0 15.0
Chile*	CLP	Country note	-	19.00	Country note	-	19.00	Country note	-	19.00	Country note	-	19.00
Colombia*	COP	Country note	-	5.0	Country note	-	5.0	Country note	-	5.0	Country note	-	5.0
Costa Rica*	CRC	Country note	-	13.0	Country note	-	13.0	Country note	-	13.0	Country note	-	13.0
Czechia	CZK	0.00	0.00	21.00	0.00	0.00	21.00	2 340.00	105.41	21.00	0.00	0.00	21.00
Denmark*	DKK	1 126 Abv. >6 but ≤ 15 Country note	163.43	25.00	518 Abv. >1.2 but ≤ 6 Country note:	75.18	25.00	1 461 Abv. >6 but ≤ 15	212.05	25.00	853 Abv. >1.2 but ≤ 6 Country note:	123.80	25.00
		1 508 Abv. >15 but ≤ 22: Country note	218.87	25.00	0.00	0.00	25.00	1 843 Abv. >15 but ≤ 22: Country note	267.49	25.00	00.0	00.0	25.00
Estonia*	EUR	155.21	168.71	22.00	66.52	72.30	22.00	155.21	168.71	22.00	66.52	72.30	22.00
Finland*	EUR	456.00	495.65	24.00	Country note	-	24.00	456.00	495.65	24.00	Country note	-	24.00
France*	EUR	4.05	4.40	20.00	Country note	-	20.00	10.02	10.89	20.00	Country note	-	20.00
Germany*	EUR	0.00	0.00	19.00	0.00	0.00	19.00	Country note	-	19.00	0.00	0.00	19.00
Greece	EUR	0.00	0.00	24.00	0.00	0.00	24.00	0.00	0.00-	24.00	0.00	0.00	24.00
Hungary*	HUF	0.00	0.00	27.00	0.00	0.00	27.00	18 100.00	51.26	27.00	0.00	0.00	27.00
Iceland*	ISK	Country note	-	11.00	Country note	-	11.00	Country note	-	11.00	Country note	-	11.00
Ireland*	EUR	424.84	461.78	23.00	141.57	153.88	23.00	849.68	923.57	23.00	141.57	153.88	23.00
Israel	ILS	0.00	0.00	17.00	0.00	0.00	17.00	Country note	-	17.00	0.00	0.00	17.00
Italy	EUR	0.00	0.00	22.00	0.00	0.00	22.00	0.00	0.00	22.00	0.00	0.00	22.00
Japan*	JPY	10 000.00	71.18	10.00	10 000.00	71.18	10.00	10 000.00	71.18	10.00	8 000.00	54.94	10.00
Korea*	KRW	Country note	-	10.00	Country note	-	10.00	Country note	-	10.00	Country note	-	10.00
Latvia*	EUR	111.00	120.65	21.00	111.00	120.65	21.00	111.00	120.65	21.00	111.00	120.65	21.00
Lithuania*	EUR	219.00	238.04	21.00	109.00	118.48	21.00	219.00	238.04	21.00	109.00	118.48	21.00
Luxembourg*	EUR	0.00	0.00	14.00 or 17.00	0.00	0.00	14.00 or 17.00	0.00	0.00	17.00	0.00	0.00	14.00
Mexico*	MXN	26.5% / 30%	-	16.00	26.5%	-	16.00	26.5% / 30%	-	16.00	26.5%	-	16.00
Netherlands*	EUR	95.69	104.01	21.00	47.95	52.12	21.00	95.69	104.01	21.00	47.95	52.12	21.00
New Zealand	NZD	354.51	217.49	15.00	354.51	217.49	15.00	354.51	217.49	15.00	354.51	217.49	15.00
Norway*	NOK	6 168.00	584.09	25.00	Country note	-	25.00	6 168.00	584.09	25.00	Country note	-	25.00
Poland*	PLN	191.00	45.48	23.00	191.00	45.48	23.00	191.00	45.48	23.00	191.00	45.48	23.00
Portugal	EUR	0.00	0.00	13.00	0.00	0.00	13.00	0.00	0.00	23.00	0.00	0.00	23.00
Slovak Republic*	EUR	0.00	0.00	20.00	0.00	0.00	20.00	79.65	84.58	20.00	54.16	58.87	20.00
Slovenia	EUR	0.00	0.00	22.00	0.00	0.00	22.00	0.00	0.00	22.00	0.00	0.00	22.00
Spain*	EUR	0.00	0.00	21.00	0.00	0.00	21.00	0.00	0.00	21.00	0.00	0.00	21.00
Sweden*	SEK	Country note		25.00	Country note	-	25.00	Country note	-	25.00	Country note	-	25.00
Switzerland*	CHF	0.00	0.00	8.10	0.00	0.00	8.10	0.00	0.00	8.10	0.00	0.00	8.10
Türkiye*	TRY	3824.13	161.42	20.00	Country note		20.00	25 836.82	1090.60	20.00	Country note		20.00
United Kingdom*	GBP	Country note		20.00	Country note		20.00	Country note		20.00	Country note		20.00
United States*	USD	44.00	44.00	-	Country note	-	-	111.00	111.00	-	Country note	-	-

Notes

1. Still wine as defined under WCO customs code 2204.

2. Sparkling wine as defined under WCO customs code 2204 10.

3. There is no OECD or international definition of “low-alcohol wine”. The national thresholds (in % abv) are indicated in the relevant country notes, if any.

Conversion of national currency in USD: conversion rates are average market rates 2023. Source: https://data-explorer.oecd.org.

Source: National delegates; position as of 1 January 2024

Annex Box 3.A.2. Country notes to Annex Table 3.A.2.

Australia. All wine (which includes grape wine, grape wine products, fruit or vegetable wine, cider or perry, mead and sake – subject to specific definitions) is generally subject to the wine equalisation tax (WET). WET does not apply to beverages containing 1.15% abv or less. WET applies at the rate of 29% of the wholesale value of the wine, and generally only applies when an entity that has a dealing with the wine in Australia is registered or required to be registered for goods and services tax (GST). The WET producer rebate, calculated as the amount of WET paid, or the amount of WET that would have been paid had the purchaser not quoted, applies to eligible wine producers in certain circumstances, up to a maximum of AUD 350 000 per financial year.

Belgium. Low alcohol still and sparkling wine is wine with alcohol content with 8.5%abv or less.

Canada. (1) As of January 1, 2024, a rate of CAD 0.702 per litre applied to wine with more than 7% abv; the rate was CAD 0.322 per litre on wine of more than 1.2% abv, but not more than 7% abv; and for all wine with 1.2% abv or less the rate was CAD 0.021 per litre. (2) Fortified wine in excess of 22.9% abv would not be included in the definition of "wine" (and, therefore, fall within the definition of "spirits"). Automatic inflationary adjustments on duty rates for wine occur annually on April 1. As of April 1, 2023, a temporary cap on the inflation adjustment for excise duties on beer, wine, and spirits at two per cent, for one year, was implemented. On March 9, 2024, a proposed two-year extension of the two per cent cap on the annual alcohol excise duty inflation adjustment was announced. Provincial and territorial governments also charge taxes and mark-ups on wine.

Chile. The sale of alcoholic beverages is subject to a surtax of 20.5% on the sale or import of wine, sparkling wine, champagne, cider and other alcoholic beverages (among others). The tax is applied to the VAT base, that is the sale`s price (excluding VAT itself) and is levied on sales made between wholesale dealers. For sales between wholesalers, the tax paid to the vendor is creditable against the tax applied on sales at each stage of the value chain (including imports) until the last sale to the final retailer. Retail commerce that sells to another vendor, can credit the input tax paid against output VAT proportionally. The sale from the retailer to the final consumer is not subject to this surtax and the retailer cannot deduct the input tax. This surtax is also not levied on the sale of wine in bulk by producers to a taxpayer seller who subject to this surtax.

Colombia. Alcoholic beverages are subject to a 5% VAT. Wines and wine aperitifs, imported and national, are subject to the consumption tax with two components: an ad valorem component at 20% of the retail price (excluding taxes); and a specific component at COP 220 per grade of alcohol in a bottle of 750cc (value for year 2024). There are no different rates for types of wine.

Costa Rica. There is a specific tax for each millilitre of absolute alcohol contained in any domestically produced or imported alcoholic beverage, regardless of its presentation, according to the concentration of alcohol by volume. Tax rates are defined by law and quarterly updated according to the variation of the consumer price index to the consumer by trimestral period.

Denmark. The rate for high-alcohol wine > 15 % abv – maximum 22 % abv is DKK 1 508 per hectolitre. Medium-alcohol wine > 6% abv – maximum 15 % abv is DKK 1 126 per hectolitre. Low-alcohol wine > 1.2 % abv – maximum 6 % abv is DKK 518 per hectolitre. The rates for sparkling wine correspond to the rates for still wine plus DKK 335 per hectolitre.

Estonia. Wine with an alcoholic content up to 6% abv is low alcohol wine.

Finland. Wine and other fermented beverages are taxed as follows: >1.2 % but not exceeding 2.8 % abv EUR 36.00/hl; >2.8 % but not exceeding 5,5 % abv EUR 198.00/hl; >5.5 % abv but not exceeding 8 % abv EUR 308.00/hl; >8 % abv EUR 456.00/hl.

France. A reduced rate of EUR 1.41/hl applies to the following categories of low-alcohol wine: cider, perry, mead, grapes juice lightly sparking. Still wines and sparkling wine: abv. >1,2 % - ≤ 15%.

Germany. Excise rate for sparkling wine is EUR 136.00/hl. Excise rate for low alcohol sparkling wine < 6 % abv is EUR 51.00. Intermediate products with a volume of alcoholic degree between 1.2 % and 22 % abv are taxed according to the following rates: > 15 % abv - 22 % abv = EUR 153/hl; <= 15 % abv = EUR 102/hl; <= 15 % abv and sparkling = EUR 136/hl. Wine is not subject to an excise duty. Nevertheless, wine is subject to excise duty supervision in the German tax territory.

Hungary. The rates for other fermented beverages (mostly fruit wines) are as follows: a) still: HUF 10 900 per hectolitre of product, b) sparkling: HUF 18 100 per hectolitre of product. c) low alcohol: HUF 0 per hectolitre of still blend of more than 50% wine and sparkling mineral water without added flavouring and not exceeding 8.5% vol. The rate for intermediate products is HUF 28 100 per hectolitre of product.

Iceland. The duty rate is ISK 134.05 per centilitre of alcohol per litre minus 2.25 centilitres for wine up to 15% abv. For example, one litre of wine that has 15% abv has 15 centilitres alcohol per litre. So, the duty for one litre of wine that contains 15% abv would be as follows: (15-2.25) * 134.05 = ISK 1709.1 per litre.

Ireland. The rate for low alcohol wine applies to wine with an alcoholic content not exceeding 5.5% abv. The rate for still wine with alcoholic content > 15% abv is EUR 616.45. The rate for still wine exceeding 5.5% vol but not exceeding 15% volume is EUR 424.84.

Japan. Low alcohol sparkling wine is defined as sparkling wine with an alcohol content of less than 10% abv. Reference information (FY2023 Liquor tax reform). From 1 April 2024, depending on the accumulated amount of liquor tax for the current fiscal year, reduced rates for small brewers (those who are willing to strengthen their management bases and whose total taxable export volume for the previous fiscal year was 30 000 hl ore less - excluding corporations with capital exceeding JPY 300 million and more than 300 full-time employees) will be applied at: (a) if the accumulated amount of liquor tax is JPY 50 million or less, 80% of the normal rate; (b) if the accumulated amount of liquor tax exceeds JPY 50 million and is JPY 80 million or less, 90% of the normal rate; (c) if the accumulated amount of liquor tax exceeds JPY 80 million and is JPY 100 million or less, 95% of the normal rate (temporary measure).The current measures will be abolished, but transitional measures will be taken to ensure a smooth transition to the new measures.

Korea. The rate of liquor tax on wine is 30% on the manufacturer’s price (or imported price). In addition, Education Tax (10% of the amount of Liquor tax levied) is also levied. These rates are applicable to both still and sparkling wine regardless of alcohol content.

Latvia. Starting from 1 March 2024 the excise for wine (still and sparkling) is EUR 122 per hectolitre. There is no specific rate for low-alcohol (still) wine (<8.5% abv).

Lithuania. Low-alcohol wine covers still and sparkling wine < 8.5% abv.

Luxembourg. The reduced VAT rate (14%) applies to still wine with alcoholic content ≤ 13% abv. Additional rate for alcopops: EUR 600 per hectolitre.

Mexico. All rates apply to the value of the goods, and not per hectolitre of product, as follows: 26.5% for beer and other alcoholic beverages up to 14° Gay-Lussac (GL); 30% for beverages above 14° G.L. and up to 20° G.L.; 53% for beverages above 20° G.L.

Netherlands. Low alcohol wine with < 1.2% vol. is subject to a consumer tax of EUR 26.13 per hectolitre and a VAT rate of 9%.

Norway. The rate shown in the table is the rate for wine with an alcoholic content of 12% abv. Excise rates for wine with an alcoholic content of 4.7%-22% abv = NOK 514 per vol. pct. alcohol and per hectolitre.

Poland. Exemptions from excise for small wine producers: (1) production ≤ 1 000 hl a year holding an annual certificate confirming total annual production issued by the competent head of the revenue office: 50% of the amount of excise duty due under the standard rate for excise duty on wine; this also applies to producers who cooperate with each other; (2) intra-community purchase or import of wine by entities that meet the conditions specified in law: 50% of the amount of excise duty due under the standard rate of excise duty on wine.

Slovak Republic. The rate of EUR 54.16/hl applies to sparkling wine with an alcoholic strength by volume not exceeding 8.5 % abv. The rate for intermediate products is EUR 84.24/hl.

Spain. Intermediate products - products to which distilled alcohol has been added - and with a volume of alcoholic degree between 1.2% abv and less than 22% abv are taxed according to the following rates: alcoholic degree > 1.2% abv and less than 15% abv = EUR 38.48/hl. Others = EUR 64.13/hl (in the Canary Islands rates are 30.14% and 50.21% respectively).

Sweden. Excise rates for alcohol wine (still and sparkling) are as follows: a) < 2.25%abv SEK 0; b) 2.25%-4.5% abv SEK 1038; c) 4.5%-7% abv SEK 1534; d) 7%-8.5% abv SEK 2112; e) 8,5-15% abv SEK 2958; f) 15,0-18,0% abv SEK 6190.

Switzerland. In general, natural wines made from fresh grapes with more than 18% abv and other wines with more than 15% abv are taxed as an alcoholic beverage (CHF 1 450 per hectolitre of absolute alcohol). All wines with more than 22% abv are taxed as an alcoholic beverage (CHF 2 900 per hectolitre of absolute alcohol).

Türkiye. Fresh grape wine (including fortified wines), grape must (except those in heading 20.09) and sparkling wines are taxed regardless of the "amount/degree of pure alcohol" contained in the goods. In this respect, no distinction between "Low-alcohol still wine" and "Low-alcohol sparkling wine" is made in table 3.2. Other fermented beverages (such as apple cider, pear cider, honey wine, sake), mixtures of fermented beverages that are not specified or included elsewhere in the tariff, and mixtures of fermented beverages and non-alcoholic beverages are taxed regardless of the "amount/degree of pure alcohol". The minimum fixed tax amount for 1 hectoliter of these goods is calculated as TL 8 436.41.

United Kingdom. Wine (including sparkling wine) with an alcoholic content below 1.2% abv is free of excise duty. All other wine attracts rates based on abv per hectolitre of pure alcohol in the product as follows: between 1.3% and 3.4% abv is GBP 927.00; between 3.5% and 8.4% abv is GBP 2477.00; between 8.5% and 22% abv is GBP 2850.00 and stronger than 22% abv is GBP 3164.00. For wine, three forms of reduced duty rates can apply. Firstly, as part of recent changes to the UK’s alcohol duty system an easement for some wine products was introduced on 1 August 2023 until 1 February 2025. During this period, wine ‘of fresh grape’ between 11.5% and 14.5% abv will pay duty equivalent to 12.5% abv. Secondly, reduced duty rates for draught wine products below 8.5% abv if the product is packaged in eligible draught containers that are designed for connection to a pump system or pressurised drinks taps. Draught wine rates as follows; below 3.5% abv per hectolitre of pure alcohol in the product is GBP 842.00; between 3.5% and 8.4% abv per hectolitre of pure alcohol in the product is GBP 1908.00. Lastly, wine below 8.5% abv and made by producers who, in the previous production year made 4,500 hectolitres or less of pure alcohol, may be entitled to the Small Producer Relief (SPR). The amount of SPR depends on the alcoholic product produced and quantity of pure alcohol in a production year. Guidance and an SPR calculator are available on Gov.UK. Additional eligibility requirements apply to small producer products entering Northern Ireland. The above rates were introduced in the UK on 1 August 2023.

United States. The weighted average Federal and State excise tax rate is USD 44 per hectolitre of product for still wine up to 16% abv and USD 111 for sparkling wine. The Federal excise rates are as follows: a) up to 16% abv: USD 0.07 per gallon for the first 30 000 wine gallons, USD 0.17 for each wine gallon over 30 000 up to 130 000, USD 0.535 for each wine gallon over 130 000 up to 750 000, and USD 1.07 per gallon over 750 000 gallons; b) 16%-21% abv: USD 0.57 per gallon for the first 30 000 wine gallons, USD 0.67 for each wine gallon over 30 000 up to 130 000, USD 1.035 for each wine gallon over 130 000 up to 750 000 gallons, and USD 1.57 per gallon over 750 000 gallons; c) 21%-24% abv: USD 2.15 for the first 30 000 wine gallons, USD 2.25 for each wine gallon over 30 000 up to 130 000, USD 2.615 for each wine gallon over 130 000 up to 750 000, and USD 3.15 per gallon over 750 000 gallons; d) artificially carbonated wine: USD 2.30 for the first 30 000 gallons, USD 2.40 for each gallon over 30 000 up to 130 000, USD 2.765 for each gallon over 130 000 up to 750 000, and USD 3.30 per gallon over 750 000 gallons; and e) sparkling wine: USD 2.40 for the first 30 000 gallons, USD 2.50 for each gallon over 30 000 up to 130 000, USD 2.865 for each gallon over 130 000 up to 750 000, and USD 3.40 per gallon over 750 000 gallons.. 26.42 US gallons = 1 hectolitre. There is no Federal VAT.

Source: National delegates.

Annex Table 3.A.3. Taxation of Alcoholic Beverages other than Beer and Wine

Country	Currency	Undenatured ethyl alcohol1 Tax per hectolitre of absolute alcohol				Other fermented beverages2 Tax per hectolitre of absolute alcohol
		Excise		VAT rate %	Small producer rate	Excise		VAT rate %	Small producer rate
National currency	USD	National currency	USD
Australia*	AUD	8 891.00	5888.08	10.00	No	Country note		10.00
Austria*	EUR	1 200.00	1304.35	20.00	Yes	Country note		20.00
Belgium*	EUR	2 992.79	3253.03	21.00	No	Country note		21.00
Canada*	CAD	1 330.30	1064.4	5.0/13.0/15.0	No	Country note		5.0/13.0/15.0
Chile*	CLP	Country note	-	19.00	No	Country note		19.00
Colombia*	COP	Country note	-	5.00	No	Country note		5.00
Costa Rica*	CRC	Country note	-	13.0	No	Country note		13.0
Czechia*	CZK	35 500.00	1599.10	21.00	No	Country note		21.00
Denmark*	DKK	15 000.00	2177.07	25.00	Yes	Country note		25.00	No
Estonia*	EUR	1 975	2146.74	22.00	No	155.21	168.71	22.00	No
Finland*	EUR	5480.00	5956.52	24.00	No	Country note		24.00
France*	EUR	1 866.52	2028.83	20.00	No	Country note		20.00
Germany*	EUR	1 303.00	1416.30	19.00	Yes	Country note		19.00
Greece*	EUR	2 450.00	2663.04	24.00	Yes	20.00	21.74	24.00	No
Hungary*	HUF	565 840.00	1602.54	27.00	Yes	Country note		27.00
Iceland*	ISK	1 814 000.00	13150.65	11.00	No	Country note		11.00
Ireland*	EUR	4 257.00	4627.17	23.00	No	Country note		23.00	Yes
Israel	ILS	9 469.00	2580.11	17.00	No			17.00
Italy*	EUR	1 035.52	1035.52	22.00	No	0.00	0.00	22.00
Japan*	JPY	Country note	-	10.00	Yes	Country note		10.00	Yes
Korea*	KRW	Country note	-	10.00	No	Country note		10.00
Latvia*	EUR	1 724.00	1873.91	21.00	Yes	111.00	120.65	21.00
Lithuania*	EUR	2 467.00	2681.52	21.00	No	219 / 109	238.04 / 118.48	21.00
Luxembourg*	EUR	1 041.15	1131.68	17.00	No	Country note		17.00
Mexico*	MXN	53%	-	16.00	No	Country note		16.00
Netherlands*	EUR	1 827.00	1985.87	9.0/21.0	No	Country note		9.0/21.0
New Zealand*	NZD	Country note	-	15.00	No	Country note		15.00
Norway*	NOK	87 700.00	8304.92	25.00	No	Country note		25.00	Yes
Poland*	PLN	6 903,00	1643.(7	23.00	No	Country note		23.00	Yes
Portugal*	EUR	1602.51	1741.86	23.00	Yes	12.06	13.11	23.00	No
Slovak Republic*	EUR	1490.40	1620.00	20.00	Yes	Country note		20.00	Yes
Slovenia*	EUR	1 320.00	1434.78	22.00	Yes	Country note		22.00
Spain*	EUR	958.94	1042.33	21.00	Yes	Country note		21.00
Sweden*	SEK	52 697.00	4966.73	25.00	No	Country note		25.00
Switzerland*	CHF	2 900.00	3222.22	8.10	Yes	Country note		8.10
Türkiye*	TRY	106 262.09	4485.53	20.00	No	Country note		20.00
United Kingdom*	GBP	Country note		20.00	Yes	Country note		20.00	Yes
United States*	USD	922.00	922.00	-	No	Country note		-

* See country note

Notes

1. Undenatured ethyl alcohol as defined under WCO customs code 2207 and 2208

2. Other fermented beverages as defined under WCO customs code 2206

Conversion of national currency in USD: conversion rates are average market rates 2023. Source: https://data-explorer.oecd.org.

Source: National delegates. Position as of 1 January 2024

Annex Box 3.A.3. Country notes to Annex Table 3.A.3. Taxation of Alcoholic Beverages other than Beer and Wine

Australia. The excise duty rate of AUD 101.85 per litre of alcohol applies to spirits and other excisable beverages (excluding beer and wine where wine includes cider and perry, mead and sake) where the alcohol content is greater than 1.15% abv. A lower rate of AUD 95.12 per litre of alcohol applies to brandy (distilled from grape wine). These rates are indexed to inflation (Consumer Price Index) in February and August of each year. Eligible distillers can apply a remission (i.e., not required to pay) of 100% of the excise duty payable up to a maximum of AUD 350 000 per financial year.

Austria. For small distilleries producing not more than 4hl pure alcohol per year the rate is EUR 648 (54% of the standard rate).

Belgium. Other fermented beverages are taxed per hectolitre of product.  In analogy to the category “wine”, the following excise rates apply: EUR 74.91 for still fermented beverages, EUR 256.32 for sparkling fermented beverages and a reduced excise rate of 23.91 EUR for low-alcohol fermented beverages (≤ 8,5 % abv).

Canada. As of 1 January 2024, spirits were subject to excise duty at the rate of CAD 13.303 per litre abv; spirits containing not more than 7% abv were subject to excise duty at the rate of CAD 0.337 per litre. (2) Beer with an alcoholic strength in excess of 11.9% abv and fortified wine with an alcoholic strength in excess of 22.9% abv are deemed to be spirits. Automatic inflationary adjustments on duty rates for alcoholic beverages occur annually on April 1. As of 1 April 2023, a temporary cap on the inflation adjustment for excise duties on beer, wine, and spirits at two per cent, for one year, was implemented. On 9 March 2024, a proposed two-year extension of the two per cent cap on the annual alcohol excise duty inflation adjustment was announced. Provincial and territorial governments also charge taxes and mark-ups on spirits. Beverages falling under the category “Other fermented beverages” are generally considered wine for tax purposes.

Chile. Alcoholic beverages are subject to a surtax on the sale or import. The rates applied are the following: 31.5% on liquors, brandy, vermouth, pisco, whiskey and other distilled alcoholic beverages; 20.5% on beer, wine, sparkling wine, champagne, cider and other alcoholic beverages. The tax is applied to the VAT base, that is the sale`s price (excluding VAT itself) and is levied on sales made between wholesale dealers. For sales between wholesalers, the tax paid to the vendor is creditable against the tax applied on sales at each stage of the value chain (including imports) until the last sale to the final retailer. Retail commerce that sells to other vendors can credit the input tax paid against output VAT proportionally. The sale from the retailer to the final consumer is not subject to the surtax and the retailer cannot deduct the input tax. The surtax is also not levied on the sale of wine in bulk by producers to a taxpayer seller who is subject to this surtax.

Colombia. Alcoholic beverages are subject to a 5% VAT. Imported and domestic alcoholic beverages are subject to a consumption tax at 25% of the retail price (excluding taxes) and COP 262 per grade of alcohol in a bottle of 750cc (value for year 2022). The specific component of this consumption tax is equivalent to COP 325 per degree of alcohol in each litre. The specific tax rate that applies to San Andrés, Providencia y Santa Catalina is of COP 51 per degree of alcohol in each litre. As a general rule, territories (“Departamento”) must use the same taxable bases and the same rates as set out above both for the specific component and for the ad valorem component of this consumption tax. However, in light of the rules governing Colombia’s state liquor monopoly, a territory can increase the rates for the two components (specific and ad valorem) or for only one of them. Currently only one territory (Nariño) increased the rate in the specific component, in the other territories the same rates of consumption tax are applied. The introduction of distilled liquors into a territory with a liquor monopoly is subject to introduction rights (“Derechos de introducción”) of 2% of annual sales. Undenatured ethyl alcohol destined for the manufacture of liquors may be subject to a monopoly by the territories. In this case, between COP 133 and COP 524 must be paid per litre to the final territory, as defined by the respective territorial authority (Asamblea).

Costa Rica. There is a specific tax for each millilitre of absolute alcohol contained in any domestically produced or imported alcoholic beverage, regardless of its presentation, according to the concentration of alcohol by volume. Tax rates are defined by law and quarterly updated according to the variation of the consumer price index to the consumer by trimestral period. Liquor: tax rates vary according to the abv following these ranges: from 0 up to 15%, between 15% and up to 30%, and above 30 %. Beer and similar: between 15% and 30%.

Czechia. The reduced rate of CZK 17 800 per hectolitre of pure alcohol applies to small fruit grower's distilleries producing no more than 30 litres of pure alcohol in fruit spirit per year per household. The excise duty of CZK 2 340 per hectolitre of product is applicable for intermediate products (products containing more than 1.2% and less than 22 % of ethanol). Excise tax applied on other sparkling fermented beverages is set at the same level as the tax rate on sparkling wine.

Denmark. The spirit rate also applies to spirit drinks with more than 1.2% alcohol as well as wine and fruit-wine with more than 22% alcohol. Small producers (≤ 10 hl annually) have the rate reduced by 50%. Other fermented beverages as defined under WCO customs code 2206 are taxed as wine, see Table 3.2.

Estonia. Excise duty rate on other fermented beverages is 155.21 EUR per hectolitre of product. Excise duty rate on low alcohol other fermented beverages (up to 6%vol) is 66.52 EUR per hectolitre.

Finland. Excise rates are as follows: (a) CN - code 2208 alcoholic content between 1.2% abv and 2.8% abv. EUR 3 090 per hectolitre of absolute alcohol; (b) other products EUR 5 480 per hectolitre of absolute alcohol. Other fermented beverages are taxed as follows: >1.2 % but not exceeding 2.8 % abv EUR 36.00/hl; >2.8 % but not exceeding 5,5 % abv EUR 198.00/hl; >5.5 % abv but not exceeding 8 % abv EUR 308.00/hl; >8 % abv EUR 456.00/hl. Intermediate beverages are taxed as follows: >1.2 % but not exceeding 15 % abv EUR 568.00/hl; >15 % but not exceeding 22 % abv EUR 863.00/hl.

France. Additional taxation for social budget: EUR 599.31 per hectolitre of absolute alcohol exceeding 18% abv.

Germany. (1) The rates for small distilleries are EUR 730 or EUR 1 022. (2) Additional rate for alcopops: EUR 5 550 per hectolitre of absolute alcohol.

Greece. The rate for ouzo and tsipouro / tsikoudia is EUR 1 225 per hectolitre of pure alcohol. The rate for traditional distillate from fruits supplied from the household of the producer, which are distilled in simple copper traditional distilling devices with a capacity of up to 130 litres, is EUR 370 per hectolitre of pure alcohol. The rate for other fermented beverages is EUR 20 per hectolitre of final product.

Hungary. A reduced excise rate of 0% applies to ethyl-alcohol produced by fruit growers' distilleries from fruit supplied to them by private fruit growers. The application of the reduced rate is limited to 43 litres of pure alcohol for private consumption per fruit grower household per year. The product subject to this reduced rate should not be brought on the market - it should be used by the household for its own consumption. The excise duty rate for other fermented beverages is HUF 10 900/hectolitre of still product and HUF 18 100/hectolitre of sparkling product. The excise duty rate for intermediate products is HUF 28 100/hectolitre of product (definition of intermediate product is in Article 17 of Directive 92/83/EEC). Ready-to-drinks are subject to a HUF 33/litre public health product tax for beverages with a sugar content exceeding 5 grams of sugar/100 millilitre and HUF 10/litre public health product tax with a sugar content not exceeding 5 grams of sugar/100 millilitre.

Iceland. Excise rate shown in this table is the rate for other alcohol than beer or wine up to 15% abv. The rate is ISK 181.4 per each centilitre of alcohol.

Ireland. Other fermented beverages and intermediate beverages are taxed as follows: other fermented beverages (cider and perry) still and sparkling ≤ 2.8% abv EUR 47.23/hl; still and sparkling > 2.8% abv but not exceeding 6.0% abv EUR 94.46/hl; still and sparkling >6.0% abv but not exceeding 8.5% abv EUR 218.44/hl; still >8.5% abv EUR 424.84/hl and sparkling >8.5% abv EUR 849.68/hl. Other fermented beverages (other than cider and perry) still and sparkling ≤ 5.5% abv EUR 141.57/hl; still >5.5% abv EUR 424.84/hl and sparkling >5.5% abv EUR 849.68/hl. Intermediate beverages: still ≤ 15% abv EUR 424.84/hl; still >15% abv EUR 616.45/hl; sparkling EUR 849.68/hl. Relief is available at a rate of 50% of the standard Irish excise rate on cider and perry exceeding 2.8% abv but not exceeding 8.5% abv, produced by qualifying small producers producing up to 10 000hl per year. Qualifying small producers of cider and perry can receive a remission or repayment of alcohol products tax on up to 8 000hl per year.

Italy. An excise duty rate of EUR 88.67/hectolitre of finished product is applied to intermediate products, i.e. to all alcoholic beverages falling under CN codes 2204, 2205 and 2206 other than beer, wine and other fermented beverages, having an actual alcoholic strength exceeding 1.2 % by volume but not exceeding 22 % by volume. Intermediate products are also any other still fermented beverages with actual alcoholic strength exceeding 5.5 percent by volume and not entirely obtained by fermentation, as well as any sparkling fermented beverage with actual alcoholic strength exceeding 8.5 % by volume and not entirely obtained by fermentation.

Japan. Excise rates are as follows (per hectolitre): a) whiskey and brandy (40% abv) JPY 40 000; b) spirits (37% abv) JPY 37 000; c) shochu Group A and B (25% abv) JPY 25 000; d) sake JPY 10 000. Of the above, reduced rates for small producer of shochu Group A and B and sake (the taxable volume of liquor in the previous fiscal year shall be up to 100 000 hl) apply for the first 2 000 hl of shochu Group A and B or sake per the fiscal year at the following rates: (1) if the taxable volume of shochu Group A and B or sake in the previous fiscal year is less than or equal to 10 000 hl, 80% of the normal rates; (2) if the taxable volume of shochu Group A and B or sake in the previous fiscal year is more than 10 000 hl but less than or equal to 13 000 hl, 90% of the normal rates (temporary measure). Reference information (FY2023 Liquor tax reform). From 1 April 2024, depending on the accumulated amount of liquor tax for the current fiscal year, reduced rates for small brewers (those who are willing to strengthen their management bases and whose total taxable export volume for the previous fiscal year was 30 000 hl ore less - excluding corporations with capital exceeding JPY 300 million and more than 300 full-time employees) will be applied at: (a) if the accumulated amount of liquor tax is JPY 50 million or less, 80% of the normal rate; (b) if the accumulated amount of liquor tax exceeds JPY 50 million and is JPY 80 million or less, 90% of the normal rate; (c) if the accumulated amount of liquor tax exceeds JPY 80 million and is JPY 100 million or less, 95% of the normal rate (temporary measure).The current measures will be abolished, but transitional measures will be taken to ensure a smooth transition to the new measures.

Korea. As Excise Tax for liquor is based on the value of the product, the rate does not vary with alcohol content. For whiskey, brandy, general distilled spirits, liquor, diluted soju and distilled soju, the Liquor tax is 72% and the Education tax is 30%.

Latvia. Starting from 1 March 2024 the excise rate is EUR 1862 per hectolitre of absolute alcohol. Starting from 1 March 2024 the reduced rate for ethyl alcohol produced by a small distillery (not more than 10 hl of absolute alcohol) is EUR 931 per hectolitre of absolute alcohol. Starting from 1 March 2024 the reduced excise rate (50% of standard rate) for fermented beverages produced by a small producer (not more than 150 hl) or medium producer (not more than 1500 hl) is applied depending on alcoholic strength: not exceeding 6% abv – EUR 35 per hectolitre of fermented beverages; exceeding 6% abv – EUR 61 per hectolitre of fermented beverages.

Lithuania. Other fermented beverages below 8.5% abv are taxed at EUR 109 per hectolitre of product; other fermented beverages above 8.5% abv are taxed at EUR 219 per hectolitre of product. Starting from 1 January 2024, intermediate products below 15% abv are taxed at 234.00 per hectolitre of product; intermediate products above 15% abv are taxed at 333.00 per hectolitre of product.

Luxembourg. Additional rate for alcopops: EUR 600 per hectolitre. From 1 May 2024 onwards, the excise rate is 1 123,1042 per hectolitre of absolute alcohol.

Mexico. The excise tax is set at an ad valorem rate and not per hectolitre of product. The rates for alcoholic beverages apply to the value of the goods as follows: 26.5% up to 14° Gay-Lussac (G.L.); 30% above 14° G.L. and up to 20° G.L.; 53% above 20° G.L.

Netherlands. Low alcohol spirits with an alcoholic content <1.2% are subject to a consumer tax of EUR 26.13 per hectolitre and a VAT rate of 9%.

New Zealand. For alcoholic beverages with 9-14% abv, the excise rate is NZD 3.5451 per litre. For alcoholic beverages above 14% abv, the excise rate is NZD 64.571 per litre of absolute alcohol (with the exception of unfortified wine and vermouth which has the rate of NZD 2.7870 per litre of product).

Norway. Excise rates on fermented beverages are as follows per hectolitre of product: a) 0.0-0.7% abv: NOK 0; b) 0.7-2.7% abv: NOK 353; c) 2.7-3.7% abv: NOK 1 328; d) 3.7-4.7% abv: NOK 2 299. The excise rate for on fermented beverages with an alcoholic content of more than 4.7% abv is NOK 482 per degree of alcohol and hectolitre. Fermented alcoholic beverages containing from 3.7 up to and including 4.7 volume per cent alcohol by volume, produced by small breweries (production below 500,000 litres annually): NOK 1 839 per hectolitre for volumes up to and including 50 000 litres annually; NOK 1 955 per hectolitre for volumes from 50 000 up to and including 100 000 litres annually; NOK 2070 per hectolitre for volumes from 100 000 up to and including 150 000 litres annually; NOK 2 184 per hectolitre for volumes from 150 000 up to and including 200 000 litres annually.

Poland. Reduced rates up to 50% of the basic rate also apply to small producers of intermediate products and fermented beverages. The rate is expressed in hl of the finished product and is not based on the alcohol content of 100% vol. Other fermented beverages - Tax per hectolitre of absolute alcohol: Poland imposes excise tax on other fermented beverages (as defined under WCO customs code 2206) per volume of the finished product (not on the alcohol content of 100% vol). For that reason, this figure (tax per hectolitre of absolute alcohol) cannot be provided.

Portugal. Intermediate products are taxed at EUR 87.92/hl. Ethyl alcohol/spirits: EUR 1602.51/hl (rates as of 01 January 2024). Other fermented beverages: EUR 12.06/hl (rates as of 01 January 2024). A reduced rate of 50% applies to small distilleries.

Slovak Republic. A reduced rate of 50 % of the national rate of excise duty on ethyl alcohol, applies to ethyl alcohol produced by fruit growers´ distilleries. The application of the reduced rate is limited to 43 litres of ethyl alcohol for personal consumption of the fruit growers´ household per year. A reduced rate of 50 % of the national excise duty rate on ethyl alcohol applies also for private home production of max. 25 l absolute alcohol per year. A reduced rate of 50 % of the national excise duty rate on ethyl alcohol applies for small producers.

Slovenia. Tax per hectolitre of absolute alcohol is EUR 1 320. For small producers not producing more than 150 litres of pure alcohol per year, the rate is EUR 660 per hl. For other fermented beverages the excise duty is EUR 0 per hectolitre of absolute alcohol.

Spain. The excise rate in the Canary Islands is EUR 750.36 per hl of pure alcohol. There is a special regime for small distilleries for which the rate is EUR 839.15 per hl (or EUR 653.34 in the Canary Islands).

Sweden. Excise rates for alcoholic beverages (other than beer and wine) are as follows: a) <2.25% abv SEK 0; b) 2.25%-4.5% abv SEK 1038; c) 4.5%-7% abv SEK 1534; d) 7%-8.5% abv SEK 2112; e) 8.5%-15% abv SEK 2958. Intermediate products: a) 1.2%-15% abv SEK 3734; b) 15%-22% abv SEK 6190. Ethyl alcohol: 100 % abv SEK 52697.

Switzerland. Under certain conditions farmers do not pay tax on the alcohol produced for their personal consumption. A reduced rate of 30 % is applied to the first 30 litres of pure alcohol produced per year by small producers. Normal rate: CHF 2900 per hectolitre. Special rate for certain types of sweet wines and vermouth: CHF 1450 per hectolitre. Special rate for alcopops: CHF 11 600 per hectolitre - alcopop, also called ready-to-drink (RTD) or designer drink, is a mix of alcohol and soda.

Türkiye. The excise rate is 0%. If the tax amount computed according to the tax rate is lower than the minimum tax amount specified in the table, then the minimum tax amount is paid.

United Kingdom. All other alcohol products with an alcoholic content below 1.2% abv are free of excise duty. Above 1.2% abv alcohol products attract the following rates based on abv per hectolitre of pure alcohol in the product as follows:

• Spirits or spirit-based products between 1.3% and 3.4% abv is GBP 927.00; between 3.5% and 8.4% abv is GBP 2477.00; between 8.5% and 22% abv is GBP 2850.00 and stronger than 22% abv is GBP 3164.00.

• Cider (excluding sparkling cider) between 1.3% and 3.4% abv is GBP 927.00; between 3.5% and 8.4% abv is GBP 967.00; between 8.5% and 22% abv is GBP 2850.00 and stronger than 22% abv is GBP 3164.00.

• Sparkling cider between 1.3% and 3.4% abv is GBP 927.00; between 3.5% and 5.5% abv is GBP 967.00; between 5.6% and 8.4% abv is GBP 2477.00; between 8.5% and 22% abv is GBP 2850.00 and stronger than 22% abv is GBP 3164.00.

• Other fermented products between 1.3% and 3.4% abv is GBP 927.00; between 3.5% and 8.4% abv is GBP 2477.00; between 8.5% and 22% abv is GBP 2850.00 and stronger than 22% abv is GBP 3164.00.

Reduced duty rates to the above can apply. Firstly, reduced duty rates for draught products below 8.5% abv if the product is packaged in eligible draught containers that are designed for connection to a pump system or pressurised drinks taps. Draught product rates as follows; below 3.5% abv per hectolitre of pure alcohol in the product is GBP 842.00; 3.5% abv and upwards:

• Cider between 3.5% and 8.4% abv is GBP 878.00;

• Sparkling cider between 3.5% and 5.5% abv is GBP 878.00; sparkling cider between 5.6% and 8.4% is GBP 1908.00;

• Other fermented products, spirits and spirit-based products between 3.5% and 8.4% is GBP 1908.00.

Secondly, all other alcohol products below 8.5% abv and made by producers who, in the previous production year, made 4,500 hectolitres or less of pure alcohol, may be entitled to the Small Producer Relief (SPR). The amount of SPR depends on the alcoholic product produced and quantity of pure alcohol in a production year. Guidance and an SPR calculator are available on Gov.UK. Additional eligibility requirements apply to small producer products entering Northern Ireland. The above rates were introduced in the UK on 1 August 2023.

United States. The weighted average Federal and State excise tax rate for undenatured ethyl alcohol is USD 922 per hectolitre. The Federal excise rate is USD 2.70 per proof gallon for the first 100 000 proof gallons, USD 13.34 on the next 22 130 000 proof gallons, and USD 13.50 for every proof gallon over 22 230 000. A proof gallon is a US gallon (3.785 litres) containing 50% alcohol. There is no Federal VAT. The Federal excise rate for other fermented beverages varies by type. The Federal rate for hard cider is USD 0.164 for the first 30 000 gallons, USD 0.17 for the next 100 000 gallons, USD 0.193 for the next 620 000 gallons, and USD 0.226 for every gallon over 750 000. The Federal rate for mead is USD 0.07 for the first 30 000 gallons, USD 0.17 for the next 100 000 gallons, USD 0.535 for the next 620 000 gallons, and USD 1.07 for every gallon over 750 000.

Source: National delegates.

Annex Table 3.A.4. Taxation of Tobacco

Country	Currency	Cigarettes					Cigars2					Rolling tobacco for cigarettes					VAT
		Specific excise per 1 000 cigarettes		Excise on value	Overall minimum excise rate per 1000 cigarettes3		Specific excise per 1 000 cigars		Excise on value	Overall minimum excise rate per 1000 cigars		Specific excise per 1 000 grams		Excise on value	Overall minimum rate excise per 1000 grams3
		National currency	USD	% of RSP1	National currency	USD	National currency	USD	% of RSP1	National currency	USD	National currency	USD	% of RSP1	National currency	USD	%
Australia*	AUD	1243.35	823.41	0.00			Country note	-	0.00			1842.00	1219.87	0.00			10.00
Austria*	EUR	76.50	83.15	32.50	165.9	180.33	Country note	-	13.00	105		Country note		56.00	147	159.78	20.00
Belgium*	EUR	178.00	193.48	34.04	326.50	354.89	0.00	0.00	11.50			136.00	147.83	31.50	228.10	247.93	21.00
Canada*	CAD	158.324	117.28	00.00			Country note	-	Country note			197.90	146.59	00.00			5.0/13.0/15.0
Chile*	CLP	67 434,04	80.27	30.00			Country note	-	52.60			Country note		59.70			19.00
Colombia*	COP	186 250.00	43.05	10.00			186 250.00	43.06	10.00			297 000.00	68.66	10.00			19.00
Costa Rica*	CRC	26 578.98	48.85	20.00			Country note	-				Country note					13.0
Czechia	CZK	1970.00	88.74	30.00	3 360	151.35	2 290.00	103.15	-			3 000.00	135.14	-			21.00
Denmark*	DKK	1 935.40	280.90	1.00			1 185.10	172.0	10.00	2 279	330.77	1 550.90	225.09	0.00			25.00
Estonia*	EUR	100.50	109.24	30.00	169.10	183.80	151.00	164.13	10.00	222.00	241.30	112.40	122.17	0.00			22.00
Finland*	EUR	94.30	102.50	52.00	353.60	384.35	125.80	136.74	34.00	353.60	384.35	80.50	87.50	52.00	273.70	297.50	24.00
France*	EUR	71.30	77.50	55.00	371.40	403.70	54.70	59.46	36.30	296.60	322.39	99.70	108.37	49.10	345.40	375.43	20.00
Germany*	EUR	111.5	121.20	19.84	Country note		14.00	15.22	1.47	Country note		54.39	59.12	17.00	Country note		19.00
Greece*	EUR	82.50	89.67	26.00			0.00	0.00	35.00			170.00	184.78	0.00			24.00
Hungary*	HUF	29 500.00	83.55	24.00	41 800	118.38	4 840.00	13.71	14.00			25 960.00	73.52	0.00			27.00
Iceland*	ISK	30 212.50	219.03	0.00			Country note	-	0.00			33 600.00	243.58	Country note			24.00
Ireland*	EUR	428.48	465.74	8.85			Country note	-	0.00			465 003	565.44	0.00			23.00
Israel*	ILS	444.03	120.99	Country note			0.00	0.00	Country note			634.34	172.84	0.00			17.00
Italy	EUR	29.30	31.85	49.50			0.00	0.00	23.50			0.00	0.00	60.00			22.00
Japan*	JPY	15244.00	108.51	0.00			15244.00	108.51	0.00			15244.00	108.51	0.00			10.00
Korea*	KRW	145 720.00	111.61	64.76			Country note	-	0.00			103 200.00	79.04	0.00			10.00
Latvia	EUR	104.00	113.04	15.00	135.90	147.72	126.7	137.72	-			91.9	99.89	-			21.00
Lithuania*	EUR	85.30	92.72	25.00	138.00	150.00	Country note	-	-	-		112.80	122.61	-	-		21.00
Luxembourg*	EUR	20.64	22.43	48.14	136.10		0.00	0.00	10.00	23.50	25.54	22.50	24.46	35.50	66.50	72.28	17.00
Mexico*	MXN	616.60	34.72	40.97	None		Country note	-	Country note	None		Country note	-	Country note	None		16.00
Netherlands	EUR	362.12	393.61	5.00	390.42	424.37	0.00	0.00	11.00			346.98	377.15	0.00			21.00
New Zealand*	NZD	Country note	-	0.00			Country note	-	0.00			Country note	-	0.00			15.00
Norway	NOK	3 150.00	298.30	0.00			Country note		0.00			3 150.00	298.30	0.00			25.00
Poland*	PLN	228.10	54.31	32.05	487.55	116.08	433.00	103.10	-	Country note		155.79	37.09	32.05	313.42	74.62	23.00
Portugal*	EUR	151.88	118.82	1.00	154.35	167.77	0.00	0.00	25.00			91.00	98.91	15.00			23.00
Slovak Republic*	EUR	84.60	91.96	23.00	132.10	143.59	89.30	97.07	-			101.30	110.11	0.00			20.00
Slovenia*	EUR	90.56	98.43	22.67	141.00	153.26	0.00	0.00	6.40	56	60.87	56.00	46.62	38.00	119.00	129.35	22.00
Spain	EUR	24.70	26.85	51.00	131.50	142.93	0.00	0.00	15.80	41.50	45.11	23.50	25.54	41.50	98.75	107.34	21.00
Sweden*	SEK	1 840.00	173.42	1.00			1 620.00	152.69	0.00			2 241.00	211.22	0.00			25.00
Switzerland*	CHF	118.32	131.47	25.00	212.10	235.67	5.60	6.22	1.00			38.00	42.22	25.00	80	88.89	8.10
Türkiye*	TRY	240.29	10.14	57.00	1429.9	60.36	33 526.00	1415.20	45.00	1253.80	52.93	32.474	1370.79	55	178.4	7.53	20.00
United Kingdom*	GBP	316.70	395.88	16.50			395.03	493.79	0.00			412.32	515.40	0.00			20.00
United States*	USD	131.00	131.00	Country note	Country note		Country note	-	-	Country note		Country note	-	-			-

Notes

* See Country notes

Conversion of national currency in USD: conversion rates are average market rates 2024. Source: https://data-explorer.oecd.org.

1. RSP. Retail selling price.

2. Cigars. Japan taxes cigars at a rate per 1 000 pieces and not according to weight. In Japan it is assumed that a cigar weighs 1 gram.

3. Overall minimum excise rates (i.e. specific + ad valorem - excl. VAT- expressed in local currency for 1000 units in this table to allow for cross-country comparison) are those applicable to prevent that a too low ex-tax price (on which the excise on value is collected) would lead to a too low overall excise amount. In the EU, a minimum excise rate as a percentage of the weighted average selling price (WAP) also applies, which is not reflected in the table itself but mentioned in the country note for the EU.

Source: National delegates. Position as of 1 January 2024

Annex Box 3.A.4. Country notes to Annex Table 3.A.4. Taxation of Tobacco

Australia. The excise rate of AUD 1.124335 per stick applies to cigarettes or cigars (in stick form) not exceeding in weight 0.8 grams per stick actual tobacco content. Other tobacco products are subject to an excise rate of AUD 1842.00 per kilogram of tobacco content. These rates apply from 1 January 2024. The excise rate for tobacco increased on 1 March 2024 to AUD 1.27816 per stick applied to cigarettes or cigars (in stick form) not exceeding in weight 0.8 grams per stick actual tobacco content. Other tobacco products are subject to an excise rate of AUD 1893.57 per kilogram of tobacco content.

Austria. As of 1 April 2024, rates for cigarettes change to 32% of RSP and EUR 80 per 1000 pieces; moreover, minimum overall excise duty per 1000 cigarettes increases to EUR 172.29. The minimum excise duty on cigarettes is 98% of the total excise duty burden on cigarettes falling under the WAP. The excise duty on cigars is 13% of RSP, i.e. EUR 110 for 1 000 pieces and the minimum excise duty on rolling tobacco for cigarettes is EUR 154 per kg as of 01/04/2024.

Belgium. As of 1 January, e-liquids are subject to an excise duty of EUR 0.15/ml.

Canada. As of 1 January 2024, the excise duty on cigars was CAD 34.45873 per 1 000 cigars plus an additional excise duty based on the greater of CAD 0.12386 per cigar and 88% of the sale price or the duty-paid value, as the case may be. Automatic inflationary adjustments on tobacco duty rates occur annually on April 1. The most recent inflationary adjustments took effect on 1 April 2023. Each province and territory also levies a tobacco tax at varying rates on all tobacco products. Retail sales prices are subject to GST/HST and, in some cases, when the HST is not applicable, to a provincial sales tax.

Chile. The sale of tobacco products is subject to 19% VAT. There is also a tax levied on the sale or import of processed tobacco, cigarettes, and cigars. The tax rate applied on the sale price of processed tobacco is 59.7%. Cigars are taxed at a rate of 52.6%. Cigarettes are taxed at a rate of 30% on the pack’s sale price plus the result of applying a factor of 0.0010304240 of a Monthly Tax Unit per cigarette in a cigarette pack (Monthly Tax Unit: CLP 65 443 or USD 68.17 approx.). The tax base of the excise tax considers the sale price to the final consumer, the VAT and the tax levied on tobacco, cigarettes and cigars.

Colombia. Tax rates for cigarettes and manufactured tobacco apply as follows: 10% on retail sale price with taxes. Cigarettes, cigars, cigarillos: COP 3725 for each pack of 20 units as of 2024. Fine-cut tobacco, snuff or chimú: COP 297 for each gram. Products of tobacco are subject to a Consumption Tax of 10% of RSP and COP 2 800 for each pack of twenty units. The sale and importation of cigarettes and elaborated tobacco, national and foreign, is taxed at the general rate.

Costa Rica. For this specific tax, there is not an individual statistic as the cigarette category represents 99% of selective consumption and value added tax revenues and it includes the cigarettes, cigars and rolling tobacco.

Czechia. As of 1 February 2024, excise duty rates on all types of tobacco products increased by 10 % in comparison to the year 2023.The excise tax applied on heated tobacco products increased by 15%. These products are subject to excise tax under a separate category.

Denmark. The excise tax for other smoking tobaccos than rolling tobacco (e.g., coarse cut tobacco) is DKK 1500.90/1000 g.

Estonia. For cigarettes, the minimal excise amount to be paid is EUR 169.10 per 1000 items. For cigars and cigarillos, the minimal excise amount to be paid is EUR 222.00 per 1000 items.

Finland. Cigarette paper: excise at 60% of RSP. Other smoking tobacco: EUR 107.50 /kg and 48 % of RSP. Heated tobacco products: EUR 0.30/g. E-liquids (with nicotine or without nicotine) EUR 0.30/ml.

France. The minimal excise amounts to be paid are EUR 371.40 per 1000 items for cigarettes, EUR 296.60 per 1000 items for cigars and EUR 345.40 per 1000g for rolling tobacco for cigarettes.

Germany. The minimum overall excise rate per 1000 cigarettes is EUR 228.88 less VAT of the TIRSP (Tax included retail selling price, i.e. all taxes included). The minimum overall excise rate per 1000 cigars is EUR 75.04 less VAT of the TIRSP. The minimum overall rate per 1000 grams rolling tobacco for cigarettes is EUR 111.78 less VAT of the TIRSP. Other smoking tobacco is subject to excise duty at a rate of EUR 15.66/kg and 13.13% of RSP. Minimum excise duty is EUR 26/kg for other smoking tobacco. The excise duty for heated tobacco products is 80 percent of the excise duty for cigarettes. Water pipe tobacco is taxed as other smoking tobacco. In addition, an excise duty of EUR 19.00/kg is levied. An excise duty of EUR 0.20/ml is levied on substances for e-cigarettes.

Greece. Minimum excise duty is 117.5 EUR per 1000 cigarettes. Other smoking tobacco is subject to excise duty at a rate of EUR 156.7 per kg of net weight.

Hungary. Minimum excise tax is HUF 41 800 per 1000 pieces for cigarettes, HUF 4 840 per 1000 pieces for cigar and cigarillo. VAT as % of tax included in the retail selling price is 21.26%.

Iceland. There is no specific excise rate for a piece of cigar. The rate is ISK 33 600 per 1000 grams of cigars (i.e., the same rate as for rolling tobacco).

Ireland. The rate of excise duty on cigarettes is EUR 428.48 per 1000 cigarettes together with an amount equal to 8.85% of the price at which the cigarettes are sold by retail or EUR 479.37 per 1000 cigarettes, whichever is the greater. The rate of excise duty on cigars is EUR 483.343per kilogram. The rate of excise duty on fine-cut tobacco for the rolling of cigarettes is EUR 465.003per kilogram. Other smoking tobacco is subject to excise duty at a rate of EUR 335.322 per kilogram.

Israel. Excises on value for cigarettes are 270% of the wholesale price plus ILS 444.03 and not less than ILS 850.62 per 1000 cigarettes. From 4 March 2024, these excises amount to 270% of the wholesale price plus ILS 524.5 and not less than ILS 930 per 1000 cigarettes. Excise on value for cigars is 90% of the wholesale price and not less than ILS 80.54 per kilogram. Excises on value for rolling tobacco are 270% of the wholesale price plus ILS 634.34 per kilogram and not less than ILS 1215.18 per kilogram. From 4 March 2024, these excises amount to 270% of the wholesale price plus ILS 749.29 and not less than 1328.57 per kilogram.

Italy. An overall minimum tax, i.e., excise duty plus VAT, was introduced from 1 January 2015. Starting from 16 January 2024 such tax amounts to EUR 202.23 per 1 000 cigarettes (i.e., 98.70% of the excise duty plus VAT on the WAP).

Japan. The tax consists of a national element, a prefectural element, and a municipal element.

Korea. The excise tax on cigars is KRW 294800/1000g. National tax (Individual Consumption Tax) is levied on tobacco since 2015.

Lithuania. The excise rate for cigars and cigarillos is set per kilogram at a rate of EUR 95.00/kg. The excise rate for smoking tobacco is set per kilogram at a rate of EUR 112.80/kg. From 1 March 2019 liquids for e-cigarettes are subject to excise duty, and the excise duty rate for them is EUR 0.25 per ml of the product from 1 January 2024. From 1 March 2019, heated tobacco products are subject to excise duty as a separate category (until 28 February 2019, the rate of smoking tobacco was applied for heated tobacco products). As of 1 January 2022, heated herbal sticks of vegetable origin which does not contain tobacco shall be considered to be heated tobacco products. The rate of excise duty for heated tobacco products is applied per 1,000 items from 1 January 2022 (before was per kilogram of tobacco) and the rate for them is EUR 79.50 per 1 000 items as of 1 January 2024.

Luxembourg. As of the 1st of February 2022, the excise duties applicable are as follow: Cigarettes Specific excise per 1 000 cigarettes - EUR 19.3914; Excise on value - 46.90%; Rolling tobacco for cigarettes Specific excise per 1 000 grams - EUR19.50; Excise on value - 34.25%. The minimal excise amounts to be paid are EUR 124 per 1000 items for cigarettes, EUR 23.50 per 1000 items for cigars and EUR 58.50 per 1000g for rolling tobacco for cigarettes.

Mexico. An ad valorem rate of 160% on the producer or importer price applies for all categories. A reduced rate of 30.4% applies for cigars or rolling tobacco as long as these products are fully handmade. The ad valorem tax applies at the stage of the producer or importer but at the retail and is calculated on the retail price. In addition, a charge of MXN 0.6166 should be paid for each sold or imported cigarette. This charge also applies for cigars and other tobacco (MXN 0.6166 per each 0.75 grams), with the exception of those that are fully handmade.

New Zealand. The excise rate for 1 000 cigarettes with actual tobacco content not exceeding in weight of 0.8 kg is NZD1 244,23 per kilo tobacco content. The excise rate for cigarettes exceeding 0.8 kg in actual tobacco content per 1 000 cigarettes and for rolling tobacco for cigarettes is NZD 1 773.02 per kilo tobacco content. The excise rate for other tobacco products, such as snuff, cigars, cheroots and cigarillos is NZD 1 555.23 per kilo of tobacco content.

Norway. The excise duty rate for cigars is not calculated per piece, but according to weight. The rate is NOK 3 150 per 1000 grams of cigars, (i.e., the same rate as for rolling tobacco).

Poland. Since 1 January 2015 the excise duty rate for cigars is calculated on per kilogramme basis. The minimum excise duty on cigarettes is 105% of the total excise duty amount charged on the price equal to the WAP. The minimum excise duty on rolling tobacco is 100% of the total excise duty amount charged on the price equal to the WAP. Minimum overall excise rate per 1000 cigars: Poland imposes excise tax on cigars per kilogramme basis. For that reason, this figure cannot be provided.

Portugal. Excise duty on cigarettes is reduced to: (1) EUR 35.36 per 1000 and 42% on value for cigarettes sold in Azores Islands and produced by small producers from the Azores and Madeira Islands; (2) EUR 86.48 per 1000 and 18% on value for cigarettes sold in Madeira Island and produced by small producers from the Azores and Madeira Islands.

Slovak Republic. As of 1 February 2024, the excise duty rates applicable are:

• Cigarettes: specific excise per 1 000 cigarettes - EUR 91.30; excise on value: 25.00%; minimum overall excise rate per 1000 cigarettes: EUR 148.00.

• Rolling tobacco for cigarettes: specific excise per 1 000 grams: EUR 139.00. Tax on rolling tobacco for cigarettes includes other smoking tobacco.

• Cigars: EUR 89.30/kg.

• Heated tobacco products: the tax base is the weight of tobacco in the smokeless tobacco product, expressed in kilograms, the excise duty rate applicable as of 1 February 2024 is EUR 211.30/kg.

Slovenia. As of 1 January 2024, the excise duty applicable are: minimum excise duty EUR 141 per 1000 cigarettes; minimum excise duty EUR 119 per kilo of rolling tobacco for cigarettes.; minimum excise duty EUR 56 per 1000 cigars; EUR 56 per kg of other smoking tobacco; EUR 0.27 per ml for electronic cigarettes; EUR 0.12  per ml for nicotine free electronic cigarettes and EUR 132 per kg of heating tobacco.

Sweden. Cigarettes with a length over 8 cm up to 11 cm should be taxed as two cigarettes. If the cigarette is longer than 11 cm every started additional 3 cm is considered a cigarette.

Switzerland. If the Retail Selling Price for 1 000 cigarettes is CHF 375.00 or less, minimum excise duty (specific + on value) is CHF 212.10 for 1 000 pieces. Specific excise per 1 000 grams of rolling tobacco for cigarettes: the minimum excise duty (specific + on value) is CHF 80.00 per 1 000 grams.

Türkiye. Minimum tax amount per 1000 cigarettes is TL 1424.90. Specific tax amount is TL 4.8058 for pack of cigarettes. Tax on cigarettes and other tobacco products computed according to the tax rate cannot be less than the minimum tax amount. After calculating the tax according to minimum tax amount system, specific tax amount is added to the tax per pack of cigarettes.

United Kingdom. Retail selling price (RSP) of cigarettes is typically based on Recommended Retail Price (RRP). RRP is usually taken as the manufacturer’s or importer’s recommended retail selling price in force at the time the cigarettes become chargeable with duty. Specific excise rate for cigars is given per kilogramme and not for 1 000 units. Specific rates exist for "other smoking tobacco and chewing tobacco" and “tobacco for heating” which on 1 January 2024 were set at GBP 173.68 and GBP 325.53 per kilo respectively.

United States. State taxes vary widely. The weighted average of Federal and State excise taxes per thousand cigarettes is USD 131.00. Federal specific excise tax rates on tobacco are: USD 50.33 per thousand for small cigarettes (no more than 3 pounds per thousand); USD 105.69 per thousand for large cigarettes; USD 50.33 per thousand for small cigars weighing no more than 3 pounds per thousand; 52.75% of the manufacturers price but not more than USD 402.60 per thousand for large cigars; and USD 24.78 per pound (54.63 per kg) for roll-your-own tobacco. Some states also tax on an ad valorem basis.

Member States of the European Union. Council Directive 2011/64/EU sets minimum rates on cigarettes i.e., a specific component of between 7.5% and 76.5% of the total tax burden (TTB) - expressed as a fixed amount per 1000 cigarettes and an ad valorem component - expressed as a percentage of the maximum retail selling price. In addition, the overall excise rate must be at least EUR 90 per 1000 cigarettes and at least 60% of the weighted average retail selling price (WAP). Member States that apply excise duty of EUR 115 or more, however, do not need to comply with the 60% criterion above.

Source: National delegates.