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Thread: Is flat Irish wine tax of a euro a bottle illegal under EU rules?

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    Default Is flat Irish wine tax of a euro a bottle illegal under EU rules?

    The UK government wants to bring in a minimum price per bottle of alcohol to deter mindless antisocial behaviour by people who "preload" on cheap off licence alcohol before going late to the pub.The EU views this minimum pricing as anticompetitive and violating the principles of free trade. It is likely to take a similar view on the one euro Irish wine tax- a form of minimum pricing as it hits cheap Lidl wines as hard as champagnes. But shouldn't the need to curb antisocial drinking and unhealthy binge drinking override this?

    The principle of free trade would be undermined if the tax is allowed. In any industry in the UK or Ireland threatened by low cost imports as many EU industries have been since the creation of the Common Market in the 1950s,imposing flat taxes on both low prices and high prices could have seen off a lot of the competition. When European clothing manufacturers were threatened by low cost Asian imports,a high flat tax on, say, all shirts could have given the European manufacturers a major competitive advantage.

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    Is flat Irish wine tax of a Euro a bottle illegal under EU rules?

    No.

    Next question.

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    “The trash heap has spoken, nyeehhhhhh. “

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    No of course it isn't, by your logic every excise duty on everything would be illegal.
    Every single EU member state charges excise on alcohol, tobacco and energy legally under council directive 2008/118/EC.

    Also excise isn't minimum pricing, retailers don't have to pass the cost onto customers like the way Tesco and Lidl aren't applying the excise to their retail price of wine until the new year.

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    Not illegal - Just stoopid.

    Anyway, sparkling wine went up by Ä2. A little carbon dioxide dissolved into wine is clearly one of the largest contributors to all our social ills and needs to by stamped out immediately.

    Newry better brace itself.

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    It would only be illegal if it was levied on French wine only, say.

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    Why are you so upset about this tax? Your solution should be to drinker better wines but not so often. Related to this is the fact that cheap wines are very bad for you. If you have asthma, for example, you should never go near cheap whites as they are full of all kinds of muck that might send you to A&E.
    There is a problem in both Britain and Ireland with binge drinking, particularly with the young and that must be stopped. Female life expectancies are falling quickly as more and more young women smoke and drink to excess.
    The Irish government is merely seeing who it can screw to pay the unsecured bond holders and to guarantee their own futures. Wine, they would say, is well worth a tap.

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    Quote Originally Posted by patslatt View Post
    The UK government wants to bring in a minimum price per bottle of alcohol to deter mindless antisocial behaviour by people who "preload" on cheap off licence alcohol before going late to the pub.The EU views this minimum pricing as anticompetitive and violating the principles of free trade. It is likely to take a similar view on the one euro Irish wine tax- a form of minimum pricing as it hits cheap Lidl wines as hard as champagnes.
    The point is that setting a minimum price prevents competing on price. Add EUR 1 to all bottles still allows price competition. A cheaper bottle is still cheaper if you add EUR 1 to everything.

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    Quote Originally Posted by ivnryn View Post
    The point is that setting a minimum price prevents competing on price. Add EUR 1 to all bottles still allows price competition. A cheaper bottle is still cheaper if you add EUR 1 to everything.
    Relative price gap falls

    Say prices of brands A and B before the tax are €7 and €12,the latter being 71.4% higher. After the €1 tax,the prices are €8 and €13 assuming no change in the markups,the latter now being 62.5% higher. So brand B is more price competitive by 9 percentage points thanks to the flat tax.

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    Not sure on the OP point but I don't agree that Irish people drink any more than most of the other Northern Europeans such as the British , Germans , Dutch , Swedes etc and we're not even in the same league as the Russians , Poles etc.

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