France's national assembly voted for the tax rise on high alcohol beer at the end of last year. The EU Commission is seeking an explanation from France on that decision. In a letter to the French authorities, Frits Bolkestein, the European commissioner for the Internal Market and Taxation, highlighted his worry over the impact of a Ђ200 per hectolitre increase in taxation on beers with an alcohol content of more than 8.5 degrees.
The over-taxation is viewed as hitting imported beers particularly hard. While waiting for France to reply, the Commission could instigate proceedings for a breach of the trade treaty which prohibits the fiscal discrimination against goods which are imported from other member states, sources reported.
14 January, 2003
