75 percent reduction in the excise duty on the consumption of liqueurs and spirits remains in the Azores
The Vice-President of the Government of the Azores conveyed today his satisfaction for the authorisation granted to Portugal by the European Commission to extend the reduction in the excise duty on the production and consumption of liqueurs and spirits in the Azores until 2020.
"Thus, the duty rate in force for the Azores remains 75 percent lower than the national excise duty rate on alcohol consumption," said Sérgio Ávila.
For the Vice-President, this decision evidences "the recognition on the part of European institutions of the specific circumstances and constraints of the Azores arising from their remote location and the need to adopt specific measures for Azorean companies and this sector in particular.
The government official also expressed the Regional Government's satisfaction with the decision taken by the European Commission, with which the Government of the Azores had already formalised a request in 2013.
According to Sérgio Ávila, the reduced excise duty rate "allows the creation of better conditions for the private sector as well as for this productive sector in particular, which are the driving forces in the development of regional economy."
"The differentiated taxation, which will be now partially revoked, will not only benefit the liqueur and spirits industry, by maintaining the best levels of competitiveness, but also will bring advantages for the regional primary production as a supplier of raw materials to this sector of activity," said the government official.
Sérgio Ávila also underlined that the "tax reduction has contributed, to some extent, to the mitigation of the constraints that small liqueur and spirits company face, being an essential measure to boost the competitiveness of the sector."
"Maintaining competitive prices on the aforementioned products in face of a very aggressive competition from external markets and preserving jobs are vital to the accomplishment of this goal," stressed the Vice-President of the Government of the Azores.