For large brewers, the excise tax on beer has been increased to 2.3 euros per liter, while micro brewers will pay 1.67 euros per liter.
TIRANA, Feb. 3 – Heading for a pint after work? Expect to pay more.
Beer sold in Albania just got more expensive as the Albanian government is implementing an earlier decision to increase the excise tax by 50 percent on beer.
For large brewers, the excise tax on beer has been increased to 2.3 euros per liter, while micro brewers will pay 1.67 euros per liter.
Tax officials say they are determined to get beer producers and retailers to pay taxes in full, as the industry has been notorious for escaping attempts to fully tax them.
The plan will also focus on taxing imported raw materials like hops and barley that are used in domestic production of beer.
Tax officials say they have noted that hops and barley amounts imported are far higher than the beer production declared for tax purposes.
Facing a large budget deficit, the Albanian government has focused on substantially increasing taxes on alcohol and cigarettes to fill gaps in revenue from elsewhere.
It wants to create a license system for importers of hops in order to create a closed network for beer producers in the country.
“The companies importing beer and cigarette products must apply to the Directorate General of Taxes for a license to make sure these imports follow defined criteria,” the government’s latest statement on the matter said. “This amendment is made in response to some problems identified in this practice.”
The most controversial part of the excise stamp plan for businesses has been the government plans to include high security excise tax stamps on beer bottles, a new practice for beer in Albania.
The government acknowledges that the new system will have additional administrative costs, but says that has not yet estimated how long it will cost.
The stamps will only be seen on beer bottles after the government sorts out a concession contract to have the stamps produced by a private company.
So far cigarette producers have bitterly complained about the added production costs in placing a digital stamp on cigarette packs, but the beer industry just learned they too would have to use to new stamps. A reaction from these businesses is also expected.
