Save the tsipouro! EC wants Greece to increase taxes on tsipouro and tsikoudia

The European Commission has requested that Greece amend the consumption tax on traditional Greek sprits tsipouro and tsikoudia (strong distilled spirits containing a high degree of alcohol). Specifically, the Commission called on Greek authorities to increase the tax coefficient on the spirit, as under current law tsipouro and tsikoudia are taxed half the rate (6%) compared to other alcoholic products using ethyl alcohol. EU laws provide that spirits using ethyl alcohol should be taxed by the same coefficient, expect on strictly rare occasions. Both the spirits do not fall under the EU exceptions, and the EC deems the tax status of these beverages in Greece are a violation of the relevant EU laws. The Commission’s demand took the form of a is a reasoned opinion, which means that if Greece fails to comply within the next two months it could be referred the EU Court. Both tsipouro and tsikoudia are similar spirits and are produced in Crete, Macedonia and central Greece and enjoy a ‘protected geographical indication’ status.