Portugal: Government plans 3% beer excises hike

Portugal’s government has announced its draft 2017 Budget which sets out plans to introduce a 3% increase in taxes for beer, spirits and liqueur wines, ESM reported on October 21.

The tax on the beers currently oscillates between €7.98 (0.5%-1.2% alcohol volume) and €28.06 (over 1.2% alcohol volume) per hectolitre.

From next year, it will range from €8.22 and €28.90.

Spirits will be taxed €1367.78/hectolitre (currently €1327.94), while the tax on liqueur wines will rise to €75.05/hectolitre (previously €72.86).

The Portuguese Association of Beer Producers (APCV) has expressed ‘deep disappointment’ with the new tax hike, arguing that the industry should be protected, as is the case with wine, which enjoys a zero taxation policy.

The draft budget also introduces a so-called ‘fat tax’, imposed on beverages with sugar and sweeteners, but excluding those made of milk, juices and fruit nectars.

The new tax rates will enter into force on 1 January 2017.

31 October, 2016