Portugal’s National Association of Producers of Wine with Designated Origin (ANDOVI) has criticized a possible increase in the tax on wine in the country, considering it 'unjust'.
In a statement, ANDOVI said it views with the greatest concern the introduction of a tax on wine under the framework of the Tax on Alcohol and Alcoholic Beverages (IABA).
According to the Association, the measure 'harms farmers directly - whose grapes are remunerated at very low values, often below production cost'. It also stresses that 'companies and cooperatives that are making a very tough investment effort to try to open export markets and thus reduce the dependence of the domestic market will be badly hurt'.
ANDOVI points out that the tax will put a question mark over the work that is being done by wine producers with the Ministry of Agriculture, including raising investment for new vineyards and directing producers to higher value segments,
The wine producers recall that currently, the wine segment is taxed at a VAT rate of 13 per cent, being the only in the Portuguese agriculture sector to be subject to a special tax.
According to ANDOVI, the wine sector employs 200,000 people and exports goods worth over €730 million. It warns that an additional tax would led to a price hike and an inevitable drop in consumption.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
