Case C-91/18: Action brought on 8 February 2018 European Commission v Hellenic Republic
Date: 2018-02-08
Institutions: Court of Justice
Subjects: excise duty, spirits, tax exemption, tax harmonisation








C_2018142EN.01003401.xml










23.4.2018   


EN


Official Journal of the European Union


C 142/34





Action brought on 8 February 2018 European Commission v Hellenic Republic
(Case C-91/18)
(2018/C 142/45)
Language of the case: Greek

Parties


Applicant: European Commission (represented by: A. Kyratsou and F. Tomat)

Defendant: Hellenic Republic

Form of order sought







—


Declare that, by introducing and maintaining in force legislation






i.


which imposes on tsipouro/tsikoudià (pomace brandy) manufactured by ‘systematic distillers’ a rate of excise duty reduced by 50 % compared to the standard national rate, whereas alcoholic beverages imported from other Member States are subject to the standard rate of excise duty, the Hellenic Republic failed to fulfil its obligations under the combined provisions of Articles 19, 21 and 23(2) of Directive 92/83/EEC (1) and Article 110 TFUE;










ii.


which imposes on tsipouro/tsikoudià manufactured by ‘occasional’ distillers a further reduced rate of excise, whereas alcoholic beverages imported from other Member States are subject to the standard rate of excise duty, the Hellenic Republic failed to fulfil its obligations under the combined provisions of Articles 19, 21 and 22(1) of Directive 92/83/EEC, (2) Article 3(1) of Directive 92/84/EEC and Article 110 TFEU 92/83/EEC;














—


Order the Hellenic Republic to pay the costs.





Pleas in law and main arguments

On 24 September 2015, the Commission sent a reasoned opinion to the Greek authorities indicating that, by imposing on tsipouro/tsikoudià manufactured by ‘permanent distillers’ a rate of excise duty of reduced by 50 % compared to the standard national rate, whereas alcoholic beverages imported from other Member States are subject to the standard rate of excise duty, the Hellenic Republic failed to fulfil its obligations under the combined provisions of Articles 19, 21 and 23(2) of Directive 92/83/EEC, and under Article 110 of the Treaty on the Functioning of the European Union (TFUE) and that, secondly, by imposing on tsipouro/tsikoudià manufactured by ‘occasional’ small-scale distillers a further reduced rate of excise, whereas alcoholic beverages imported from other Member States are subject to the standard rate of excise duty, the Hellenic Republic had failed to fulfil its obligations under the combined provisions of Articles 19, 21 and 22(1) of Directive 92/83/EEC, Article 3(1) of Directive 92/84/EEC and Article 110 of the Treaty on the Functioning of the European Union (TFUE).
The provisions of EU law governing the harmonisation of the structures of excise duties on alcohol and alcoholic beverages do not provide for the application of a reduced rate of excise duty on tsipouro/tsikoudià. Furthermore, the imposition of a further reduced rate of excise duty on tsipouro/tsikoudià produced by ‘occasional’ small-scale distillers is contrary to the applicable provisions of Directive 92/83/EEC, in conjunction with the relevant provisions of Directive 92/84/EEC. Consequently, with regard to that measure, the current Greek legislation infringes those directives. Furthermore, that legislation infringes the first paragraph of Article 110 TFEU, as it imposes a more onerous tax on imported alcoholic beverages similar to tsipouro/tsikoudià, and infringes the second paragraph of Article 110 TFEU, as it indirectly protects tsipouro/tsikoudià with regard to other alcoholic beverages which are mainly imported from other Member States and are in competition with that local product.


(1)  Council Directive 92/83/EEC of 19 October 1992 on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages (OJ 1992 L 316, p. 21).

(2)  Council Directive 92/84/EEC of 19 October 1992 on the approximation of the rates of excise duty on alcohol and alcoholic beverages (OJ 1992 L 316, p. 29).