Brewery sector threatening constitutional challenge against excise duties

The Finance Ministry plans to increase the excise duty for beer by 11.1% in 2001 and if it comes into effect the breweries will file a motion against this decision to the Constitutional Tribunal. The Ministry can increase the excise duty by 7.5% this year and it has only increased it by 6% so it is possible that it will increase the duty by an additional 1.5% later this year. This rise has increased the price of beer by 5-8%. "These increases are in conflict with the bill on increasing sobriety, as the low-percentage alcohol products would have sharper increases than the higher-percentage ones. The Finance Ministry could underestimate its effects if it goes forward with the decision. Budget revenues can be lower, as our sales will drop," said brewery sector spokesman Andrzej Dlugosz. Some from the sector say breweries may not be able to increase prices, as even now the market is balking at price increases and in effect companies will have to decrease their profit margin. The Ministry plans to increase the excise duty by 6.9% for wines and beer in 2002 and by 5.9% in 2003. (Puls Biznesu, page 8) M.M.