SWEDEN has been told by the European Commission to end its favourable tax treatment of beer compared to wine or face legal action at the European Court of Justice.

Under the Swedish alcohol tax regime, wine in the 8.5 per cent to 15 per cent abv band bears tax at about four times the rate for beer in the three per cent to five per cent range, even though it has only three times as much alcohol.

The Commission argues that this violates EU treaty rules barring Member States from imposing higher taxes on products from other ...

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