Portuguese brewers will file a complaint against the State to the European Commission, due to "unfair tax treatment" of beer compared to wine.
According to the president of the Portuguese Association of Beer Producers (APCV), João Abecasis, the action will be filed by the end of March, adding that it comes about following years of "extremely penalizing tax treatment of beer".
Abecasis stressed that one of the priorities for 2015 "is to defend the interests of its members". He pointed out that VAT rate on beer is 23% compared to 13% for wine. On top of this, a 3% increase in the Special Consumption Tax (IEC) has also been approved in the state budget.
Last year, the Portuguese brewing sector, which is composed of five production units, paid the state about €230 million in taxes (including VAT and IEC).
On a positive note, beer production and exports increased last year by 0.7% and 4.6%, respectively, year-on-year, with the association predicting "a new dynamic" for 2015, thanks to the 20 or so small breweries producing in Portugal.
Total beer production reached 7,290 thousand hectoliters (1 hectolitre equals 100 liters) last year, compared to 7,237 thousand hectoliters in 2013, with beer exports totalling 2,624 thousand hectoliters.
The APCV also reported that the national malt production increased 3.8% to almost 74 tons.
© 2015 European Supermarket Magazine – your source for the latest retail news. Story by Branislav Pekic
