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Cabinet proposes indexation of alcohol excise duties

20 April 2026

Dutch Cabinet is allocating €627 million to mitigate the rising energy prices for citizens, entrepreneurs, fishermen, and farmers. Taxes will also be reduced by €340 million. This will be largely financed by raising other taxes, such as excise duties on alcohol.

The proposal is to start indexing all excise duties on alcoholic beverages from 2027. The current Excise Act does not provide for indexation regarding excise duties on alcoholic beverages, meaning the excise duty remains the same unless Parliament accepts an increase. For instance, excise duties on alcoholic beverages have not been increased over the past two years.

The amount by which excise duties on alcoholic beverages will be adjust annually is determined by the so-called table correction factor. This includes price inflation, but it is adjusted for changes in the rates of indirect taxes, such as excise duty and VAT increases. For the consumer, this means a gradually rising excise duty, which by 2032 will be on average about 1.5 cents per glass higher than it is now. It is estimated that indexation will structurally generate around €130 million in extra excise revenue for the state treasury after about 5 years.

In Europe—according to the World Health Organization—9 countries have indexation of alcohol excise duties.

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