Beer tax rise “unfair”

Proposed 4% increase in special taxes

Portuguese beers

The beer sector in Portugal has criticised the Government’s proposal for the 2023 State Budget (OE2023), claiming that the 4% increase in special taxes on beer but not wine is “unfair and discriminatory”.

In a statement released yesterday, Francisco Gírio, the secretary general of APCV – Cervejeiros de Portugal, said that the increase in this tax is unfair because it increases the tax burden of beer compared to wine, which has a zero IEC/IABA (Excise Tax/Alcoholic Drinks Tax) tax rate.”. Both compete in the domestic liquor market, but beer pays IEC/IABA and 23% VAT, whilst wine pays no IEC/IABA and only 13% VAT.

According to the association, “Portuguese microbreweries will pay more than double the taxes per hectolitre (100 litres) than a large Spanish brewer pays”. In the same press release, the APCV said that this possibility provided for in the OE2023 “will have a ‘serious’ impact on the competitiveness and survival of a beer sector, its companies and consumers”.

Portuguese beer prices could increase

“If the proposal is approved in the Assembly of the Republic, the brewing sector will be greatly harmed compared to its two biggest competitors, wine and beer from Spain, and beer prices in Portugal could increase, as more costs could be passed on to consumers”, warned the association.

The situation is made worse by external competition. “In Spain, Portugal’s main competitor in the cerveja market, the similar tax paid is less than half of the rate provided for in the proposal presented by the Government”, noting that “while in Portugal the IEC/IABA on beer is €21.10/hectolitre, in Spain it has been, since 2005, only €9.96/hectolitre”.

“Aggravating this tax when Spain keeps it frozen is putting Portuguese producers in an even more disadvantaged situation in the face of Spanish competition”, said the same official, noting that “in relation to national wine companies, and in relation to Spanish breweries” this is “probably, the only national industry with tax increases every year”.

“the national brewing sector demands from the Portuguese State a medium-term fiscal stability pact and access to lower rates of special tax for artisanal brewers, up to a given limit of annual production”

APCV – Cervejeiros de Portugal

Thanks to PeterA for the link

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7 thoughts on “Beer tax rise “unfair””

  1. Relatively speaking its few Portuguese who drink beer. They are wine drinkers.
    Its the Brits who drink beer. Let them pay more tax to support the Portuguese economy.


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