After being approved by the lower house (Bundestag), the upper house of the German parliament (Bundesrat) has also voted in favor of a temporary lowering of beer tax for smaller breweries in Germany on May 28, 2021.
As a measure to relieve breweries from the burden of the COVID-19 pandemic, the beer tax quantity scale will be restored in its version before 2004, but only for a limited period for the years 2021 and 2022.As before, the reduced beer tax rates are limited to small, independent breweries with a total annual production of less than 200,000 hl of beer.
The corona pandemic has particularly affected smaller and medium-sized breweries, which are disproportionately involved in the business with bars, clubs, restaurants, hotels and the regional festival life.
“With the restoration of the 'old' beer tax volume scale, politicians are recognizing the existence-threatening situation of the medium-sized brewing industry as a result of the corona pandemic, but also the economic and cultural importance of beer as a food,” said Roland Demleitner, Managing Director of the Association of Private Breweries Germany.
Around 1,460 of the 1,520 breweries nationwide benefit from the tax relief - that is around 95 percent of all breweries in Germany. The tax savings in the two years concerned make up a total financial volume of approx. EUR 6.9 million.
According to the plans of the Federal Ministry of Finance, breweries do not have to apply for the reduced beer tax rates retroactively from January 1, 2021, but can automatically expect a reimbursement retrospectively from January 1, 2021. The main customs offices are to be instructed to change the beer tax assessments retrospectively using the automated procedure.
“Even if gastronomy and tourism are picking up speed again in more and more regions of Germany, the economic situation for Germany's predominantly medium-sized brewing industry remains difficult. We are therefore extremely pleased that the legal prerequisites have now been created to reduce the base load for small and medium-sized breweries and thus provide an entrepreneurial boost for our diverse brewing landscape,”says Roland Demleitner happily.
Although the restoration of the "old" beer tax quantity scale has only been limited to two years so far, the Association of Private Breweries will of course advocate a permanent restoration. The reduced beer tax rates serve to maintain the structure of a medium-sized brewing industry in the Federal Republic of Germany and are intended to at least partially compensate for the size-related competitive disadvantages of small, independent breweries compared to large brewing groups. This economic and political purpose will remain in place even after 2022, the association states.
Although the restoration of the "old" beer tax quantity scale has only been limited to two years so far, the Association of Private Breweries will of course advocate a permanent restoration. The reduced beer tax rates serve to maintain the structure of a medium-sized brewing industry in the Federal Republic of Germany and are intended to at least partially compensate for the size-related competitive disadvantages of small, independent breweries compared to large brewing groups. This economic and political purpose will remain in place even after 2022, the association states.
Although the restoration of the "old" beer tax quantity scale has only been limited to two years so far, the Association of Private Breweries will of course advocate a permanent restoration. The reduced beer tax rates serve to maintain the structure of a medium-sized brewing industry in the Federal Republic of Germany and are intended to at least partially compensate for the size-related competitive disadvantages of small, independent breweries compared to large brewing groups. This economic and political purpose will remain in place even after 2022, the association states.
