The 10% increase of beer excises is stated in a draft act amending Romania’s Tax Code.
The measure will cause the beer market to shrink with impact on state budget revenues, said Constantin Bratu, the general manager of the association. He added that the excise tax increase will also affect raw material suppliers.
About 45% of the price of a beer goes to the state budget and additional taxation will increase the rate, Bratu explained.
According to a bill amending the Tax Code, excise taxes on beer will rise starting April 1 from EUR0.748 /hl to EUR0.8228/hl and from EUR0.43 to EUR0.473 in the case of independent producers with an annual production capacity lower than 200,000 hectoliters.
Romania collected 620 million lei (EUR142 million) in beer excises last year, up from RON580 million in 2011.
Beer production in Romania represents 4.44% of beer production in Europe, which is 383 million hectoliters. (EUR1=RON4.3571)