1 | Highlights
2 | Government revenues
›
Graph 2.1. / Government revenues due to the production
and sale of beer in the European Union : 50.6 billion euro
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Source : Ernst & Young calculation (2011).
Excise
VAT hospitality
VAT retail
Income tax
employees breweries
Social security
contributions breweries
Income taw
employees
other sectors
Social security
contributions
other sectors
9,21
5,16
0,75
1,26
12,13
8,17
13,90
Highlights of government revenues
in Europe (EU-27)
Since 2008, total government revenues arising from
beer in terms of VAT, excise, income taxes, payroll
taxes and social security contributions fell by 6
percent to 50.6 billion euro in 2010.
Income tax and social security paid by employers
and employees were the largest contributors in
fiscal terms; estimated at over 24 billion euro.
VAT received from the retail and hospitality sectors
provided over 17 billion euro. In 2010 VAT revenues
due to beer were collected mainly from the
hospitality sector, although the amount from that
source decreased faster between 2008 and 2010
than those collected from the retail sector.
The contribution from excise tax was estimated to
be approximately 9.2 billion euro, less than in 2008,
when the figure amounted to 9.78 billion euro.
Although the tax burden on beer has grown in
recent years due to increases of the excise and
VAT rate in many Member States, the total revenues
from these taxes did not show comparable
increases. In some cases the revenues on excises
even decreased despite an increase in rates.
The brewing sector provides substantial benefits
to national governments in fiscal terms. Due to the
production and sale of beer, governments receive
significant revenues from excise, VAT, income-related
taxes and social security contributions paid by workers
and their employers in the brewing sector and in other
sectors where jobs can be attributed to ‘beer’.
As presented in the table below in 2010 these revenues
amounted to approximately 50.6 billion euro. These levels
are similar to those in 2009, but considerably lower than
those in 2008, when total government revenues were
almost 54 billion euro.
The figure above only includes revenues which we
were able to quantify with our economic impact model.
Governments also benefit from corporate taxes, property
taxes, community taxes, environmental taxes (such as
climate change levy), vehicle excise duty and stamp duty
land tax. However, since these taxes are not directly
related to the production and sales of beer (in volume
or value) we are not able to calculate these revenues.
Because of this, the 50.6 billion euro figure can be seen
as an underestimation of actual government revenues.
It should be noted also that the model does not
include government costs resulting from support to the
unemployed whose jobs were related to beer supply
or delivery, and which have increased due to lower beer
consumption in Europe.
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Government revenues