The European Commission (EC) has proposed to remodel existing excise duty rules on alcohol in the EU to reduce the costs for small businesses and provide better protection for consumer health.

If the proposal is approved, small alcohol producers will be able to access a new EU-wide certification system confirming access to lower rates of duty across the EU.

It is also expected to reduce the illegal use of tax-free denatured alcohol to make counterfeit drinks.

“The EU’s common rules on the structures of excise duties on alcohol and alcoholic beverages are more than 25 years old and in urgent need of an update.”

The EC commissioner for economic and financial affairs, taxation and customs Pierre Moscovici said: “The EU’s common rules on the structures of excise duties on alcohol and alcoholic beverages are more than 25 years old and in urgent need of an update so that they can keep pace with the challenges and opportunities offered by new technology and trade developments, while protecting public health.

“I encourage member states to move ahead quickly and decisively with this review.”

The proposal will also update IT systems and increase the lower threshold for reduced rates from 2.8% alcohol-by-volume (ABV) to 3.5%.

In addition, it also intends to remove barriers for small and medium-sized enterprises (SME).