Matthew Vella
Entertainment businesses, bars and restaurants will not only have to face a higher energy bill, but higher excise duties on alcohol – a measure government hopes will hit hard ‘bad habits’.
Minister Tonio Fenech yesterday announced a doubling of the excise payable on alcohol spirits, a hike that will impact upon both consumers and businesses alike as the Christmas season approaches.
Alcoholic drinks with a content of between 1.2 per cent to 22 per cent, such as beer, cider, wine and liquors, will have their excise increased from €46.59 per 100 litres, to €150 per litres – an increase of 222 per cent.
Fenech said the government would be fighting alcohol abuse among the youngest drinkers by increasing the excise on alcopops (1.2 per cent to 7 per cent alcohol volume) from 23c per litre to 40c per litre – a 74 per cent increase.
He also announced a 20c increase in the excise on cigarettes and tobacco.
According to the budget estimates, government is expected to collect €79.9 million from the excise on tobacco and alcohol – an increase of €15.1 million or 23.3 per cent.
Under the pretext of fighting the contraband of alcohol, Fenech said excise will be decreased to European levels from 23c for each percentile per litre, to 17c.
He said government had already established good laws in the fight against alcohol abuse and contraband, but that new incentives were needed to fight illegal importation and protect jobs in the alcohol production industry, while fighting abuse of alcohol amongst the young. “Our intention is to reduce the excessive consumption of alcohol,” Fenech said.
He also announced an increase in the legal age of alcohol consumption from 16 to 17 years, and a €100,000 fund for a consultation exercise with partners involved in the fight against alcohol abuse. “We’ll be especially increasing resources and the effort in educating the public, especially youth, on the ill effects of excessive alcohol consumption.”
GRTU president of the tourism, hospitality and leisure sector Philip Fenech, said there was obviously going to be a sector of the industry that caters for 16 to 17-year-olds, which would be affected by the increase in consumption age. “Considering that language schools in Malta bring a lot of students also aged 16, raising the consumption age will affect their contribution to the nightlife industry, from a tourism perspective,” Fenech said. “One has yet see how this difference in age, in terms of consumption, those segments that cater for them in the leisure industry.”
“But government has given out the signal that it wants to curb under-age drinking and fight unfair competition from illicit alcohol. In terms of the increase in excise for wine and vermouth, the increase is relatively not so large and will not make much of a difference.”
