According to Eurostat data, retail prices for alcoholic beverages in Greece, including spirits, beer, and wine, were higher than the EU average in 2023.
This puts Greece among the most costly countries in Europe for alcoholic beverages, placing it 3rd out of the 27 EU states, with prices reaching 51% above the average.
At the same time, Greece is the priciest country for alcoholic beverages among Mediterranean and tourism-driven countries.
Greece’s price index of 151.1 is mainly attributed to the very high Special Consumption Tax (SCT) on alcoholic drinks in Greece, along with VAT, which both increase costs for the end consumer, creating favorable conditions for illegal trade at the same time.
On the other hand, the lowest alcohol prices were recorded in Austria at 83.3 17% below the EU average, and Germany at 87.2 at 13% below the average.
The high price of alcoholic beverages has a negative impact on the country’s tourism industry as it is a competitive disadvantage and promotes smuggling from neighboring countries.
The Greek Federation of Spirits Producers, in order to tackle the problems that arise from the high alcohol prices, proposes a gradual adjustment of the Special Consumption Tax on alcoholic beverages to align with the European average over a three-year period (2024-2026).
This measure, which is considered to be fiscally neutral, is expected to lead to a reduction in final consumer prices, restrict illegal trading and enhance the sector’s liquidity and productivity.
Source:
Eurostat (Last updated: 9/8/2024)
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