European Commission (EC) opened an infringement procedure for Portugal

On November 16, the European Commission (EC) opened an infringement procedure for Portugal due to excise duties on wine, giving two months as a deadline for replying to the letter.

The Ministry of Finance assured that Portugal is analyzing the process applied by the European Commission, due to the taxes on wine and that the executive has in order to respond to it within the legal deadline.

In response to Lusa, the Ministry responded last Monday that “the content of the notification issued by the European Commission is under consideration.” Portugal intends to respond to this process “within the course of the legal deadline”, stressed the Finances.

On November 16, the European Commission (EC) opened an infringement procedure for Portugal due to excise duties on wine, giving two months as a deadline for replying to the letter.

According to the Community executive, “Portugal treats as wine and incorrectly applies a zero rate to products with an alcohol content between 15% and 18% in volume and that have been enriched”, stressing that the legislation of the European Union (EU) “ only allows the inclusion of these products in the category of wine if they are produced without any enrichment”.

Brussels also argues that Portugal excludes all aromatised wines from the category of wines, even if the conditions laid down in EU legislation are fulfilled, which results in the application of a higher excise duty rate.

In both cases, the treatment of the above products is contrary to the definition of wine in EU excise legislation.

Portugal has until January to respond satisfactorily to the doubts, otherwise the process moves forward to the second phase, with the sending of a reasoned opinion.