The European Commission has issued a reasoned opinion to Portugal as part of its June infringement package, urging compliance with EU rules on excise duties applied to wine.
EU excise duty regulations permit a zero excise duty on wine. However, wines with an alcohol content between 15% and 18% by volume can only qualify for this exemption if the alcohol content was naturally obtained. If the alcohol level has been increased artificially, such as by adding sugar or alcohol, a higher excise duty must be applied. Currently, Portuguese legislation does not accommodate this condition, resulting in these products improperly benefiting from the zero rate applicable to wine in Portugal, according to the Commission’s statement.
The Commission has given Lisbon a two-month deadline to respond and make the necessary legislative adjustments.
If Portugal fails to act within this period, the European Commission may refer the matter to the Court of Justice of the European Union.
Additionally, the Commission announced today that it would take legal action against Portugal in the EU Court of Justice for failing to transpose into national law the harmonized rules on excise duties concerning alcohol and alcoholic beverages.
