The Netherlands has kicked off the new year with an increase in excise taxes by 8.4% on still and sparkling wines. According to industry media reports, from January 1, 2024, for products with an alcohol content of more than 8.5% abv, the tax will be raised from €88.30 per hectoliter to €95.69 (+€7.39/hl). For products with an alcohol content of less than 8.5% abv, the tax will rise to €47.95 (+€3.71/hl), and for products with more than 15% abv, it will increase by €12.50 to €161.80 per hectoliter.
This move follows, among others, the recommendation of the World Health Organization (WHO), which advocates for tax increases on alcoholic and sugary beverages to limit deaths related to their consumption. Simultaneously, some Dutch cities such as Utrecht, Haarlem, and Groningen have decided to ban alcohol advertising on municipal billboards.
Fear of Customer Defection
The increases in excise taxes are still significantly lower than the originally planned level of 16.3%, intended to fund a government plan to combat poverty. However, as wine prices have already soared significantly in recent years due to other factors, the government has stepped back from this consideration.
The Royal Association of Dutch Wine Merchants (KVNW) is apprehensive about the possibility of consumers flocking to bordering nations such as France or Germany, where this tax is not applied."The difference with foreign countries is growing, and consumers are encouraged to cross the border where products are cheaper," expressed concern President Peter van Houtert. ITP
