Beer producers oppose new excise law

TIRANA, March 30 – Albania’s beer producers have strongly opposed recent changes to the excise law approved in Parliament by the majority, obliging local breweries to put security codes on each bottle of beer. In an open letter to Finance Minister Ridvan Bode, beer producers say the decision will increase costs for local breweries by at least 15 percent and endanger the domestic beer industry which has invested 80 million euros, mainly from loans taken by commercial banks.
The industry which employs 3,000 people and pays more than 10 million euros a year in taxes, says the changes to the law were made in hurry without consulting the interest groups.
Producers say the new law obliging them to put security codes is unique in Europe and runs counter to the Stabilization and Association Agreement which sanctions that no new customs tariffs or other tariffs having similar effects can be imposed.
“The new law has a discriminating effect for the domestic production obliging Albanian producers to put security codes at a time when imported beer has tax stamps,” producers say in the open letter.
Producers complain that Albania’s current excise tax level at 22 euros/hectolitre, far higher than in Germany, the Czech Republic, Bulgaria and Greece where excise rates vary from 5 to 14 euros/hectolitre.
The new measure, which local producers say puts the domestic industry at risk, increases costs for each bottle of beer by 6 lek, brewery owners say.