Portuguese Beer Association: Tax increase on beer is unfair

Portuguese Beer Association: Tax increase on beer is unfair

On October 25, the Portuguese Beer Association criticized the government’s proposal for the 2023 national budget (OE2023), pointing out that the 4% increase in the special tax on beer compared to wine is unfair.
Francisco Gírio, secretary general of the Portuguese Beer Association, said in a statement issued on the same day that the increase in this tax is unfair because it increases the tax burden on beer compared to wine, which is subject to IEC/IABA (excise tax/excise tax) Alcoholic beverage tax) is zero. Both compete in the domestic alcohol market, but beer is subject to IEC/IABA and 23% VAT, while wine does not pay IEC/IABA and only pays 13% VAT.

According to the association, Portugal’s microbreweries will pay more than double the tax per hectoliter than Spain’s larger breweries.
In the same note, the association said that this possibility set out in OE2023 would have serious implications for the competitiveness and survival of the beer industry.
The association warned: “If the proposal is approved in the Parliament of the Republic, the beer industry will be greatly harmed compared to its two biggest competitors, wine and Spanish beer, and beer prices in Portugal could rise, Because more costs may be passed on to consumers.”

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