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.
Industry Key Facts
The spirits sector΄s production and marketing constitute part of one wider supply chain, which contributes €2.1 billion to the GDP of the Greek economy and supports 73.4 thousand positions work full employment (data 2024).
The domestic (recorded) production of distillates has shown an increasing trend in recent years, reaching the 56 million liters final product the 2024 (4.9% increase) in comparison with in 2023). The regional dimension of domestic production is significant, with 67% of production is concentrated in Thessaly, in North Aegean and in Eastern Macedonia & Thrace.
The recorded consumption distillates has decrease important in comparison with the 2009, as a result of the recession of the Greek economy and the increases in special tax rates tax consumption (EFK) and VAT.
After the significant decline due to the pandemic in 2020 and the subsequent recovery, spirits sales have stabilized at approximately 5.1 million 9-liter cases in the three-year period 2023-2025. Sales are now at 64% of 2009 levels, while due to the different pricing and taxation conditions between individual beverage categories, a substitution trend is also recorded.
Chart. Distillate sales by category, 2009-2024, 2025 estimate
Source : Ministry Finance, General Chemical laboratory State, Analysis IOBE.
Tax burden and market impact
The IOBE study points out that Greece has the highest excise tax rate on spirits between at countries her EU-27 (in purchasing power parity units power) and more than double from him means term neighboring and tourist competitive countries.
The taxes (excise tax and VAT) represent above from the half (55%) her final retail price of one distillate. OR high tax charge creates negative effects both in domestic market, strengthening the motivations committing an illegal act trade, as long as and in tourism product, reducing the competitiveness of.
The restriction the illegal trade (domestic implied production product two-day distillers, counterfeit products, and cross-border trade), with an adjustment of the tax frame and coordinated controls in market, is estimated that will yields multiplicatively benefits in tax revenue by expanding the tax base, in public health, the sustainability of many businesses and in employment, strengthening the operating framework of healthy businesses in the sector. In recent years, the AADE audits have highlighted the problem, as only the three-year period 2022-2024 have been seized about 500 thousand liters of alcoholic beverages.
Benefits for the national economy from the reduction of EFK in spirits
In an environment where efficiency and the fight against the shadow economy are central axes of tax policy, the study assesses whether convergence to him European means term taxation of distillates can to improve the operation her market, to limit the losses public revenue from non recorded activity and to strengthen the contribution of industry in the economy.
| 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) . |
► Adjusting the excise tax rate is not anticipated to cause a significant rise in actual consumption. Instead, it is expected to encourage a shift in quantities from illegal trade to lawful commerce.
► Based on IOBE analysis, adjusting the excise tax rate is expected to positively impact the Greek economy, particularly by:
- Strengthen healthy entrepreneurship with incentives to integrate the consumption of legal, controlled and safe spirits into all on-site consumption channels (increase sales against 8.3%).
- Stimulate domestic production, enhancing the sustainability of businesses as well as the creation and development of new productive enterprises with a direct positive impact at positions employment in national and regional level.
- Strengthen the GDP against about €180 million and the employment in all the supply chain distillates against 13.1 thousand positions full employment.
- Maintain a neutral or even positive fiscal balance with an overall positive change revenue (EFK, VAT, taxes income) until and €2.4 million
- Reduce the retail price sale of one formal bottle drink against 13.6%.
- Streamline the tax framework, placing Greece closer to countries that offer a similar tourism product, strengthening the resilience of businesses HORECA.
You can to see the complete text her study
here.
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