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Sunday, October 17, 2021

SEOAP requests a reduction of VAT to 13% for alcoholic beverages

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The need for institutionalization of measures by the State is pointed out by the Association of Greek Producers of Spirits and Alcoholic Beverages (SEAOP) as, as it claims, the revenues of VAT, VAT from alcoholic beverages continue to lag behind in 2019 and 2018, despite the increase compared to 2020. Among other things, it calls for a reduction in VAT to 13% and alcoholic beverages.

More specifically, as he announced the SEOAP, according to the data collected for 1st half of 2021, VAT revenues for alcohol and alcoholic beverages, record a positive change +27,65 million € (+ 42,4%), in relation to 1st half of 2020. In addition, in the general case of alcoholic beverages (beer, wine, spirits) revenues from excise duties (excise duties) also increased by +23,6 million €  (+ 17%) in relation to the corresponding 1st half 2020 (universal lockdown measures had entered into force). In particular, for the alcoholic beverages sector, the revenues from the TACs show an increase of € 12,65 million  compared to 2020.

However, although there is an increase in VAT revenues, VAT compared to 2020, thanks to the recovery of the internal market, still lagging behind the pre-pandemic era. More specifically, EFC revenues are significantly reduced compared to the corresponding half of the year. 2019 and 2018 (-23,1% and -28,3% respectively), due to the Covid-19 pandemic and the restrictions it imposed (lockdown with simultaneous closing of the restaurant).

Requests and suggestions

SEAOP points out the need for institutionalization of measures by the State that will lead to the improvement of the business environment and to ensure the stability of the relevant public revenues, so that they return to the levels of 2019 and 2018.
To support and restart the catering industry, a corresponding measure has already been instituted for non-alcoholic and coffee.
The SEAOP, considering positively the measures taken for the specific sector and given the gradual effort to restart the focus, supports the horizontal reduction of VAT to 13%, including alcoholic beverages.

In addition, he argues the reduction of the Special Consumption Tax Rate (CCT) of alcoholic beverages to the level of the European average (from € 25,50 / liter of ethyl alcohol at € 18,00) in order to accelerate the recovery of the legal market in a healthy way, significantly reducing the cost of raw materials and capital needs for the reopening of local consumption and facilitating the permanent movement of a sufficient volume of sales from illegal to legal trade, while ensuring competitive would directly give growth impetus to the domestic tourism product.

Finally, the ΣΕΑΟΠ supports the possibility of adjusting VAT and VAT paid at Customs, in installments, and discount 25% for timely payment of VAT at the Customs.

Kalliopi Aslanidou

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