In a statement released today, Francisco Gírio, the
secretary general of APCV -- Cervejeiros de Portugal, said that "the increase
in this tax is unfair and discriminatory because it increases the tax burden of
beer compared to wine, which has a zero IEC/IABA tax rate." [Excise
Tax/Alcoholic Beverage Tax]. Both compete in the domestic liquor market, but
beer pays IEC/IABA and 23% VAT, wine pays no IEC/IABA and pays only 13%
VAT.
According to the association, "Portuguese
microbreweries will pay more than double the taxes per hectolitre than a large
Spanish brewer pays".
In the same note, the entity said that this possibility
provided for in the OE2023 "will have a 'serious' impact on the
competitiveness and survival of the beer sector, its companies and
consumers".
"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.
External competition
According to the entity, external competition is worsening
the situation. "In Spain, Portugal's main competitive market in the field
of beers, 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 euros/hectolitre, in Spain it is, since
2005, only 9.96 euros/hectolitre".
"Aggravating this tax when Spain keeps it frozen is
putting Portuguese producers in an even more deficit 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".
Thus, "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", indicated the association.
This is exactly the wrong way to support a small and growing industry in Portugal. Protecting the wine industry is not productive. Consumer tastes are changing rapidly and Portugal should lean in and support brewing in a big way. There are world class brewers in Portugal to be very proud of. Policy makers should do everything possible to enhance their success. Lower the taxes not raise them.
By Jason Richardson from Lisbon on 25 Oct 2022, 18:22
Tax the big boys i.e.Super Bock, Sagres who have buckets of money and leave the smaller breweries alone so that they can develop in a post covid economy. The government should be promoting the great wines of Portugal abroad, they're affordable and very good. This coud bring more income instead.
By David Clark from Algarve on 26 Oct 2022, 13:52