Belgium is trying to counter excessive drinking. Luxembourg meanwhile is making a mint attracting alcohol buyers with low prices.

Alcohol prices in Belgium are already above the European average and, according to daily newspaper La Libre, officials decided to raise excise duties on wine and spirits from 31% to 41%.

The gap between Belgium and Luxembourg is widening when it comes to alcohol prices:

Buying alcohol in Luxembourg

The goal behind the increased alcohol prices in Belgium is two-fold. According to La Libre, the Belgian government hopes to increase its tax income all while decreasing alcohol consumption.

To put it euphemistically, the plan is yet to bear fruit: Belgium lost €120 million instead of ballooning the turnover through increased excise duties, and alcohol consumption is still on the rise. The reason for this apparent paradox? Belgians are going abroad to buy alcohol, notably to Luxembourg and France. One in two Belgians live less than 50 km away from a border.

Cross-border sales have exploded since 2016 (+250%). As a result, alcohol consumption has increased in Belgium in 2018.

Luxembourg passed a national alcohol plan earlier this year. An increase of excise duties was not included in the plan. Etienne Schneider had in fact argued that an increase of prices would not lead to the desired change in a rich country like Luxembourg.

9% of deaths in Luxembourg are due to excessive alcohol consumption. The EU average lies at 6%.
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