News
12.01.2010
Czech beer industry to face problems in 2010
Czech beer will become more expensive, due to a recent increase of consumption tax in the country. In an attempt to ensure the flow of funds into the state budget, Czech Ministry of Finance has proposed to raise the country’s consumption tax, which has already led to an increase in beer prices by 30%. The Czech Parliament has already approved the government’s proposal and starting from January 1 the bill came into force.
Meanwhile Czech major brewers have already reacted on the new bill decided to raise prices for beer from the current 24 CZK to 32 CZK per hectoliter. Pilsner, a well-known Czech beer brand has recently said that it will increase prices for its drinks by 4,6%. This means that a lager bottle will become more expensive than the young Spanish or Italian wines.
The new tax rates will mainly affected small breweries due to their low productivity. However it for some reason will not be effective in the case of wine.
"Small breweries will lose their profits: someone will not have money to pay taxes and any funds for further development. It would mean bankruptcy for small breweries. Currently Czech beer is the second tourist attraction in the country after its historical monuments, "- said Jiri Fusek, president of the European Association of Small and Independent Brewers.
According to official data, currently Czech Republic remains the world’s leader in terms of beer consumption, the second place is occupied by Ireland, while Austria is the third.
FoodBizDaily.com
