The European Court of Justice has ruled against a European Commission challenge to the Greek government’s lower rate of tax on Ouzo compared to other alcoholic drinks.
The Commission argued that it had received complaints from drinks manufacturers that the 50 % lower tax rate for ouzo contravened Directive 92/83 on the harmonisation of alcohol excise duties. The Commission’ s opinion is that the favourable tax regime for Ouzo meant excess taxes for products from other European countries.
The Court stated the Greek law that transposed the Directive into national legislation contained an article that set the lower rate for Ouzo. Since the article is in compliance with the Directive and the Directive remains in force, the ECJ decided that Greece had not broken EU law and dismissed the Commission’ s complaint.
