The idea originates from Bavaria in Germany, where such a system has underpinned the brewing industry and helped support local production.
The structure and its parameters provided by EU law allowed the creation of systems which suited the needs of individual states.
EU law allows for a maximum discount of 50% of beer tax on production levels up to 20 million litres with the provision for a stepped structure.
In 2020, the EU changed the excise duties directives and amongst other things requires each country to have an option to extend the application of lower tax rates for small producers.
[5] The Society of Independent Brewers (SIBA) campaigned alone, led by chairman Peter Austin, without support from any other body, for a progressive duty system to be introduced in the UK, for some 21 years.
The initial 2000 proposal in the UK was subsequently increased in 2002 to 5,000 with taper relief up to 60,000 hectolitres, after a few smaller family brewers joined SIBA and help influence a policy change within the Society.