Acta Univ. Agric. Silvic. Mendelianae Brun. 2020, 68, 597-604
Published online 2020-07-01

The Relationship Between Production and Consumption of Alcohol and its Taxation in the EU Countries

Petr David, Lucie Formanová, Adam Lisický, Kristýna Torkošová, Michaela Vetráková

Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

Received June 13, 2018
Accepted June 1, 2020

The taxation of alcoholic beverages in the EU member states varies despite the harmonization efforts. This situation has been caused by the relatively liberal tendencies in tax policies concerning the determination of excise duties on alcohol and alcoholic products. The main goal of the present research is to identify the relationship between the taxation of spirits, beer and wine on the one hand, and the production and consumption on the other hand. This dependence is examined through the correlation analysis of the degree of taxation and production/consumption. The highest values of negative correlation have been identified between the taxation and consumption/production of wine. The correlation suggests that tax aspects influence both the production and the consumption of wine. Lower values of correlation coefficients between the production/consumption and taxation of beer and spirits show that these taxes represent stable and well predictable revenues of the EU member states' budgets. The obtained results support the significance of fiscal function of these taxes. Thus, there is a contradiction between the main function of excise duties and the real state of affairs in the area of taxes on the consumption of alcohol and alcoholic beverages. These are facts to be considered in the future efforts to harmonize excise duties.


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