2009/0075(CNS)

Excise duties: reduced rate on locally produced and consumed alcohol in the autonomous regions of Madeira and the Azores

Procedure completed

2009/0075(CNS) Excise duties: reduced rate on locally produced and consumed alcohol in the autonomous regions of Madeira and the Azores
RoleCommitteeRapporteurShadows
Opinion AGRI
Opinion ECON
Lead REGI HÜBNER Danuta Maria (EPP)
Lead REGI
Lead committee dossier: REGI/7/00321
Legal Basis TFEU TFEU 349-p1sub1-as1
Subjects
Links

Activites

  • 2009/11/13 Final act published in Official Journal
  • 2009/11/10 Act adopted by Council after consultation of Parliament
  • #2972
  • 2009/11/10 Council Meeting
  • 2009/11/10 End of procedure in Parliament
  • 2009/10/20 Text adopted by Parliament, 1st reading/single reading
    • T7-0033/2009 summary
    • Results of vote in Parliament
  • 2009/10/14 Committee report tabled for plenary, 1st reading/single reading
  • 2009/10/06 Vote in committee, 1st reading/single reading
  • 2009/09/14 Committee referral announced in Parliament, 1st reading/single reading
  • 2009/09/09 Committee draft report
  • 2009/07/23 EP officialisation
  • 2009/06/09 Legislative proposal
    • COM(2009)0259 summary
    • DG Taxation and Customs Union, KOVÁCS László

Documents

History

(these mark the time of scraping, not the official date of the change)

2012-02-09
activities added
  • date
    2009-06-09
    docs
    • url
      http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2009&nu_doc=0259
      text
      • PURPOSE: to authorise Portugal to apply, from 1 January 2009 to 31 December 2013, a reduced rate of excise duty applicable to certain products in Madeira and the Azores.

        PROPOSED ACT: Council Decision.

        BACKGROUND: Decision 2002/167/EC authorised Portugal to apply a reduction in the rate of excise duty on rum and liqueurs locally produced and consumed in the autonomous region of Madeira and on liqueurs and eaux-de-vie locally produced and consumed in the autonomous region of the Azores. The reduced rate applied must not be more than 75% lower than the standard national excise duty on alcohol. This decision ceased to have effect on 31 December 2008. Portugal has sought an extension of this authorisation until 31 December 2013. The Portuguese authorities have provided additional information aiming to demonstrate that it is necessary to extend the reduced rate of excise duty beyond the end of 2008 in order to maintain the production of rum, liqueurs and/or eaux-de-vie and associated agricultural activities.

        At present, nine companies are registered to produce rum and/or liqueurs in Madeira; nine companies produce liqueurs and 38 companies produce eaux-de-vie in the Azores. The local industry employs around 130 workers in Madeira and around 90 workers in the Azores. In Madeira, the cultivation and processing of sugar cane and fruits provides work for around 1 000 family-owned agricultural holdings.

        In 2007 the market share of the products benefiting from a reduced rate of excise duty was lower than that of similar products imported or supplied from other parts of the Community (20.3 % in Madeira; 38.9% in the Azores) from which these products therefore face strong competition. Furthermore, notwithstanding the application of a reduced rate of excise duty, the average retail selling price (including tax) in Madeira and in the Azores of locally produced rum, liqueurs or eaux-de-vie is higher than that of similar products from outside these regions. The main handicaps faced by the producers of rum, liqueurs and/or eaux-de-vie arise from additional costs linked to the factors identified in Article 299(2) of the Treaty (i.e. remoteness, insularity, small size, difficult topography, and climate).

        IMPACT ASSESSMENT: the economic impact of the proposal concerns in essence producers of rum and liqueurs in Madeira and producers liqueurs and eaux-de-vie in the Azores and can, therefore, be considered as minimal. If such producers were to lose the benefit of the reduced rate of excise duty, the resulting increase in retail selling price would risk jeopardising the subsistence and survival of these economic sectors, as well as employment directly and indirectly connected to them.

        CONTENT: it is proposed to authorise Portugal to apply, from 1 January 2009 to 31 December 2013, a reduced rate of excise duty applicable to locally produced and consumed rum and liqueurs in the autonomous region of Madeira and to locally produced and consumed liqueurs and eaux-de-vie in the autonomous region of the Azores. The reduced rate may be lower than the minimum rate of excise duty on alcohol set by Directive 92/84/EEC, but may not be more than 75% lower than the standard national excise duty on alcohol. This corresponds to the authorisation granted from 1 January 2002 until 31 December 2008 by Decision 2002/167/EC.

        BUDGETARY IMPLICATIONS: the proposal has no implication for the Community budget.

      celexid
      CELEX:52009PC0259:EN
      type
      Legislative proposal published
      title
      COM(2009)0259
    body
    EC
    commission
    • DG
      Taxation and Customs Union
      Commissioner
      KOVÁCS László
    type
    Legislative proposal
  • body
    EP
    date
    2009-07-23
    type
    EP officialisation
  • date
    2009-09-09
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE428.141
      type
      Committee draft report
      title
      PE428.141
    body
    EP
    type
    Committee draft report
  • date
    2009-09-14
    body
    EP
    type
    Committee referral announced in Parliament, 1st reading/single reading
    committees
  • date
    2009-10-06
    text
    • The Committee on Regional Development adopted the report drawn up by Danuta Maria HÜBNER (EPP, PL) approving unamended, under the consultation procedure, the proposal for a Council decision authorising Portugal to apply reduced rates of excise duty in the autonomous region of Madeira on locally produced and consumed rum and liqueurs and in the autonomous region of the Azores on locally produced and consumed liqueurs and eaux-de-vie.

      According to the rapporteur, whilst the proposed decision is essentially technical, it is important that Parliament reviews it in order to ensure that the qualifying conditions governing the original authorisation still exist and to control that no undue advantage was being given to one sector of the market.

    body
    EP
    committees
    type
    Vote in committee, 1st reading/single reading
  • date
    2009-10-14
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2009-0039&language=EN
      type
      Committee report tabled for plenary, 1st reading/single reading
      title
      A7-0039/2009
    body
    EP
    committees
    type
    Committee report tabled for plenary, 1st reading/single reading
  • date
    2009-10-20
    docs
    body
    EP
    type
    Text adopted by Parliament, 1st reading/single reading
  • date
    2009-11-10
    body
    type
    Act adopted by Council after consultation of Parliament
  • date
    2009-11-10
    body
    CSL
    type
    Council Meeting
    council
    Economic and Financial Affairs ECOFIN
    meeting_id
    2972
  • date
    2009-11-10
    body
    EP
    type
    End of procedure in Parliament
  • date
    2009-11-13
    text
    • PURPOSE: to authorise Portugal to apply, from 1 January 2009 to 31 December 2013, a reduced rate of excise duty applicable to certain products in Madeira and the Azores.

      LEGISLATIVE ACT: Council Decision 2009/831/EC authorising Portugal to apply a reduced rate of excise duty in the autonomous region of Madeira on locally produced and consumed rum and liqueurs and in the autonomous region of the Azores on locally produced and consumed liqueurs and eaux-de-vie

      CONTENT: the Council adopted a decision authorising Portugal to apply reduced excise duty rates on certain locally produced and consumed spirits. The Decision provides that the reduced rate may be applied to rum and liqueurs which are locally produced and consumed in the autonomous region of Madeira and to liqueurs and eaux-de-vie which are locally produced and consumed in the autonomous region of Azores. The rates applied may be lower than the minimum rate of excise duty on alcohol set by Directive

      92/84/EEC, but may not be more than 75% lower than the standard national excise duty on alcohol.

      It is recalled that by Council Decision 2002/167/EC Portugal had been authorised to apply a reduced rate of excise duty in the autonomous region of Madeira on locally produced and consumed rum and liqueurs and in the autonomous region of Azores on locally produced and consumed liqueurs and eaux-de-vie. The application of a reduced rate of excise duty on those products was considered necessary for the survival of the local industry producing and marketing them. In view of the high cost of those activities arising mainly from factors inherent to the situation of Madeira and the Azores as outermost regions (remoteness, insularity, small size, topography and climate), it was considered that only a reduction of the rate of excise duty on the locally produced and consumed products concerned could enable them to continue to compete on an equal footing with similar products imported or supplied from other parts of the Community and thus ensure the survival of the industries. Portugal could apply to those products a rate of excise duty lower than the full rate on alcohol laid down in Council Directive 92/84/EE), and lower than the minimum rate of excise duty on alcohol set by this Directive but not more than 75 % lower than the standard national excise duty on alcohol. This measure was applicable from 1 January 2002 until 31 December 2008.

      Subsequently Portugal sought an authorisation subject to the same terms, for the period from 1 January 2009 until 31 December 2013.

      The granting of this new authorisation sought is justified in order to avoid endangering the development of those outermost regions. The local industry employs around 130 workers in Madeira and around 90 workers in the Azores. In Madeira, the cultivation and processing of sugar cane and fruits provides work for around 1 000 family-owned agricultural holdings. Faced with difficulties in exporting outside the regions, the regional markets are the only possible outlets to sell those products.

      A reduction of the rate of excise duty is continued to be authorised at the level requested to help offset the competitive disadvantage which distilled alcoholic beverages produced in Madeira and in the Azores face as a result of higher production and marketing costs.

      APPLICATION: the Decision will apply from 1 January 2009 until 31 December 2013.

    type
    Final act published in Official Journal
    docs
committees added
  • body
    EP
    responsible
    False
    committee_full
    Agriculture and Rural Development
    committee
    AGRI
  • body
    EP
    responsible
    False
    committee_full
    Economic and Monetary Affairs
    committee
    ECON
  • body
    EP
    responsible
    True
    committee
    REGI
    date
    2009-10-06
    committee_full
    Regional Development
    rapporteur
    • group
      EPP
      name
      HÜBNER Danuta Maria
  • body
    EP
    responsible
    True
    committee_full
    Regional Development
    committee
    REGI
links added
National parliaments
European Commission
other added
  • body
    EC
    dg
    Taxation and Customs Union
    commissioner
    KOVÁCS László
procedure added
dossier_of_the_committee
REGI/7/00321
geographical_area
  • Portugal
reference
2009/0075(CNS)
subtype
Legislation
legal_basis
  • Treaty on the Functioning of the EU TFEU 349-p1sub1-as1
stage_reached
Procedure completed
instrument
Decision
title
Excise duties: reduced rate on locally produced and consumed alcohol in the autonomous regions of Madeira and the Azores
type
CNS - Consultation procedure
final
subject

code AGPLv3.0+, data ODBLv1.0, site-content CC-By-Sa-3.0
© European Union, 2011 – Source: European Parliament