🍷 Excise on wine

Excise on wine is a tax the state collects on the sale of alcoholic drinks, including wine. It is included in the price of the bottle, so the buyer pays it with the wine without noticing. The producer or importer pays the excise and then builds it into the price.

The rate depends on the country. In some it is high, in others small, and in some European Union countries it is zero for still wine. Spirits are taxed more heavily than wine, and sparkling wine often pays more than still. The tax may be calculated per volume of liquid or per amount of alcohol.

What it is for. It is a source of budget revenue and a way to influence alcohol consumption. High taxes make alcohol more expensive, so it is bought less often.

Excise ties wine to both trade and law. Next to it stands another law, on the legal age for buying alcohol. Both rules belong to the state regulation of alcohol. Alcohol is for adults only.

In Tax Foundation's 2021 table of 28 European countries, 15 show no wine excise at all, among them Germany, Italy, Spain, Portugal, Greece and Austria. At the top per 0.75 l bottle stood Ireland (about 3.19 euro), Finland (about 3.16) and the United Kingdom (about 2.51). The tax is set per hectolitre of finished wine, not by strength, so every still wine pays one rate. Member States may also exempt wine made at home and drunk by the maker, family or guests, provided none is sold.