Because what happens when higher taxes start pushing consumers and spending across the border? In the latest episode of the Retail Influencer on the French stream of the podcast, I had a nice conversation with Gert van Leerberge and Etienne Bouillon from Vinum et Spiritus, the association that represents the alcohol producing companies in Belgium.
And together, we all discussed the impact of Belgium's alcohol excise duties and the unintended consequences for Belgian retail.
Because since the major increase introduced in 2015 of those duties, of those excise duties, the price gap between us and the neighboring countries has become significant for a number of products.
For spirits, the excise duty can actually represent a substantial part of the final price of Not just a few cents, but really a few euros.
But the issue actually goes far beyond the bottle of whiskey, gin or liquor.
When consumers cross the border for a cheaper alcohol product, they often buy much more than alcohol.
The entire shopping basket tend to move abroad and it benefits foreign retailers and it takes value away from the Belgian retail ecosystem.
Higher excise duties do not necessarily generate higher tax revenues if they encourage consumers to move their purchase elsewhere.
So, our conversation also looked at the potential impact of further VAT increases, the role of price in cross-border shopping, and the importance of looking at taxation from a broader retail and economic perspective.
Because what happens when higher taxes start pushing consumers and spending across the border? In the latest episode of the Retail Influencer on the French stream of the podcast, I had a nice conversation with Gert van Leerberge and Etienne Bouillon from Vinum et Spiritus, the association that represents the alcohol producing companies in Belgium.
And together, we all discussed the impact of Belgium's alcohol excise duties and the unintended consequences for Belgian retail.
Because since the major increase introduced in 2015 of those duties, of those excise duties, the price gap between us and the neighboring countries has become significant for a number of products.
For spirits, the excise duty can actually represent a substantial part of the final price of Not just a few cents, but really a few euros.
But the issue actually goes far beyond the bottle of whiskey, gin or liquor.
When consumers cross the border for a cheaper alcohol product, they often buy much more than alcohol.
The entire shopping basket tend to move abroad and it benefits foreign retailers and it takes value away from the Belgian retail ecosystem.
Higher excise duties do not necessarily generate higher tax revenues if they encourage consumers to move their purchase elsewhere.
So, our conversation also looked at the potential impact of further VAT increases, the role of price in cross-border shopping, and the importance of looking at taxation from a broader retail and economic perspective.
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