E-Malt.com News article: Bulgaria: Finance Ministry considers an increase in beer excise duty - sources

Bulgaria’s Finance Ministry is considering an increase in the beer excise duty, Dnevnik cited undisclosed sources on November, 10.

No details have been agreed yet, sources said. The Finance Ministry was not available for immediate comment.

According to proposed amendments to the excise legislation, which were passed by Parliament at first reading, a higher excise duty will only be imposed on cigarettes. Finance Minister Simeon Dyankov said in October that the gambling tax might also be increased. His earlier proposal for a higher excise on spirits was rejected by Prime Minister Boiko Borissov.

Currently, the excise duty on beer is 1.50 leva a hectolitre/degrees Plato, ranging from 0.075 to 0.082 leva a bottle.

The news took by surprise the Union Brewers in Bulgaria (UBB) which said they have not been approached on the matter. If realised, the plans will deal a heavy blow to local breweries and related sectors, deepening the stagnation prompted by the economic meltdown that dragged down beer sales by 10 per cent in the first nine months of the year, UBB chief secretary Ivana Radomirova said.

The move could pull the plug on investments in the brewing industry, setting off a wave of job cuts, UBB said.



11 November, 2009