Trade: Revenue collected from excise duties on spirits down by over 53.8 million lei in the first 9 months

The revenues collected by the state from excise duties on spirits have registered a decrease of 53.87 million lei in the first nine months of this year compared to the same period in 2024, despite the increase in excise duty by 14.4%, say representatives of Spirits Romania, an employers' association that brings together producers and importers of spirits in Romania.   According to official data submitted at the request of Spirits Romania, the National Agency for Fiscal Administration (ANAF) collected excise duties totaling 826.75 million lei in the first nine months of this year, compared to 880.62 million lei in the same period of last year, representing a decrease of about 6%. During this period, the excise duty on spirit drinks increased twice, with 4.4% starting on 1 January 2025 and the second time by 10% starting on 1 August 2025.The association points out that a further increase of 10% is foreseen in GD 141/2025 for 1 January 2026. At the same time, the representatives of Spirits Romania warn that keeping this excise increase calendar will have dramatic consequences, with a major impact on the proliferation of beverages in the non-fiscalized market.According to a study recently made by Roland Berger, 30-40% of spirit drinks consumption in Romania remains untaxed, being connected to illicit production, smuggled or counterfeit goods. This situation leads to significant revenues loss – estimated, according to Roland Berger, at 45-50 million euro annually. 'The authorities' data confirm a phenomenon that we have repeatedly warned about: increasing excise duty on spirits is not a solution for increasing budget revenues. A higher excise duty means a higher price for consumers, which leads to a shift towards illicit products which, although cheaper because they do not include taxes, are dangerous. The consumer shift towards counterfeit products is a phenomenon that will increase if excise duty increases continue. But beyond the problem of reduced state revenue, the greatest danger is linked to public health, because counterfeit drinks do not benefit from quality controls and guarantees. These risks affect important sectors such as the Horeca or tourism', said Florin Radulescu, president of Spirits Romania, quoted in the press release.   According to the association, excises and VAT represent approximately 60% of the final price of spirits.'Although all alcoholic drinks contain the same active ingredient - ethanol - and a standard unit of beer, wine or spirits has the same effect on the human body, the taxation is disproportionate. Consumers pay almost four times more excise duty on a standard unit of spirits than on beer and up to 64 times more than on wine. Against this background, the spirits industry has called for a more balanced tax framework for the different categories of drinks, based on pure alcohol content,' the document says. Spirits Romania is an employers’ association which brings together the main producers and importers for spirit drinks in Romania and it is affiliated to SpiritsEurope, umbrella organisation at European level for the alcohol industry which reunites over 31 national associations from 24 countries.