Drinks to fall in price from 27 June

24 June 2005

BRUSSELS — Drinks will fall in price for consumers from 27 June when the government will reverse a tax hike on drink containers.

The ‘ecotax’ was increased at the start of this year on one-use drink bottles, newspaper ‘Het Gazet van Antwerpen’ reported on Friday.

The federation of retailers and wholesalers, Fedis, will now ask the government to ensure the tax cut will apply to its sector from 27 June also and not just for consumers.

On 10 January, the government raised ecotaxes on one-use drink containers by 50 percent. The tax rose by 10 cents per litre to 15 cents per litre.

The aim was to convince consumers to choose reusable packaging, but a large number of consumers simply bought their drinks across the border.

The legislative proposal aimed at reducing the tax again has set a date of 27 June, but the proposal will not have passed through parliament in time.

Nevertheless, retailers have decided to drop their prices from 27 June anyway.

Fedis is anticipating that the government will set up a transitional arrangement in which retailers will be able to pay a lower ecotax from that date.

But the federation also went a step further and demanded the government scrap the ecotax completely.

Subject: Belgian news