The study aims to map and record current trends in Greece’s spirits sector, estimate the size of the spirits supply chain and its contribution to the Greek economy, and examine alternative scenarios for adjusting the tax framework. The latter is intended to mitigate serious distortions and stimulate GDP, employment and tax revenues.
Key figures and trends
The value chain of the spirits sector makes a particularly significant overall contribution to the Greek economy. In 2024, the broader sector contributed €2.1 billion to the Greek GDP, employed 73,400 people and generated an estimated €622 million in taxes and contributions.).
In 2024, domestic legal production of spirits stood at 56 million litres of finished product, which is an increase of 4.9% compared to 2023. In terms of value, it approached €164 million. The largest proportion of domestic spirits production was ouzo, accounting for 34 million litres of finished product in 2024. Additionally, there is a strong regional presence, with 67% of production located in Thessalia, Voreio Aigaio and Anatoliki Macedonia & Thraki.
The legal volume of spirits recorded 5.1 million 9-litre cases in 2024, while consumption shows a marginal decrease compared to 2023. Based on estimates, sales are expected to remain near 5.1 million 9-litre cases in 2025.
Despite the recovery in recent years, the spirits sector was severely affected by the recession in the Greek economy after 2009 and by tax policy, especially after 2010.
The reduction has had a significant impact on the overall figures, with job losses estimated at 25,000 between 2009 and 2024 in the wider value chain of the spirits sector, a €717 million decline in GDP and a €136 million decline in labour income.
Source : Ministry of Finance, General Chemical State Laboratory (G.C.S.L.), ΙΟΒΕ analysis.
Taxation in spirits
Spirits significantly contribute to tax revenues, with excise duties and VAT being the primary sources. Excise duty revenue from spirits totalled €346 million in 2024.
Spirits have been subjected to eight tax increases since 1998. The total increase of the excise duty in 2010 was 87% compared to 2009 and 125% compared to the tax regime of 2005–2008. The VAT rate has increased by 5 percentage points since 2009. Total taxes account for 55.1% of the final price of spirits.
Tax burden and market differences
The IOBE study points out that in Greece the excise duty rate on spirits is higher than in other EU countries and more than double from him means term neighboring and tourist competitive countries.
Taxes (excise duty and VAT) account for more than half (55%) of the final retail price of a spirit product. This high tax burden creates negative effects both in the domestic market, strengthening incentives for illicit trade, and in the tourism product, reducing competitiveness.
The restriction of illegal trade (domestic production by two-day distillers, counterfeit products and cross-border trade), through an adjustment of the tax framework and coordinated market controls, is estimated to generate multiple benefits in tax revenue through the expansion of the tax base, as well as in public health, business sustainability and employment, strengthening the operating framework of legitimate businesses in the sector. In recent years, AADE audits have highlighted the problem, as approximately 500 thousand litres of alcoholic beverages were seized during the three-year period 2022–2024.
Benefits for the national economy from the reduction of excise duty on spirits
The study assessed the impact of adjusting the excise duty on spirits on the market and on the Greek economy as a whole. It analysed the potential effects of this change on reducing the illegal market, strengthening the supply chain and domestic production, and on overall tax revenues.
| In particular, the study examines the possibility of reducing the excise tax rate from the existing level of €2,548 per 100 it ethyl alcohol in €1,930 per 100 lt ethyl alcohol (average term EU) . |
►The adjustment of excise duty to the European average (€1,930) is expected to contribute to reducing illegal trade and replacing unrecorded consumption with legal consumption.This supports the industry and creates a robust business environment in the medium term.
Specifically:
- GDP in the Greek economy is expected to increase by €180 million
- Employment is set to rise by 13,100 jobs
- The fiscal balance will be positive by €2.4 million
- The retail price of a standard bottle of spirits will decrease by 13.6%
The results of the reduction in excise duty on the sector and the economy are significant, as it is estimated that it will:
- Strengthen healthy entrepreneurship by providing incentives to integrate consumption into legal channels at all stages of on-site consumption, in the tourism sector and in catering, while also boosting domestic beverage production.
- Streamline the tax framework, bringing Greece closer to countries with similar tourism products, strengthening the sustainability and resilience of HORECA businesses.
- Lead to a reduction in the retail price of a typical bottle of spirits.
- Increase GDP and employment while maintaining a balanced budget.
See the full study in Greek
here.
Ακολουθήστε τον ΣΕΑΟΠ στα κοινωνικά δίκτυα:
