REPORT on the proposal for a Council decision authorising Portugal to apply a reduced rate of excise duty on certain alcoholic products produced in the autonomous regions of Madeira and the Azores

    22.7.2020 - (COM(2020)0240 – C9‑0190/2020 – 2020/0118(CNS)) - *

    Committee on Regional Development
    Rapporteur: Younous Omarjee
    (Simplified procedure – Rule 52(1) of the Rules of Procedure)

    Procedure : 2020/0118(CNS)
    Document stages in plenary
    Document selected :  
    A9-0140/2020
    Texts tabled :
    A9-0140/2020
    Debates :
    Texts adopted :

    DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

    on the proposal for a Council decision authorising Portugal to apply a reduced rate of excise duty on certain alcoholic products produced in the autonomous regions of Madeira and the Azores

    (COM(2020)0240 – C9‑0190/2020 – 2020/0118(CNS))

    (Special legislative procedure – consultation)

    The European Parliament,

     having regard to the Commission proposal to the Council (COM(2020)0240),

     having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9‑0190/2020),

     having regard to Rule 82 of its Rules of Procedure,

     having regard to the report of the Committee on Regional Development (A9-0140/2020),

    1. Approves the Commission proposal;

    2. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

    3. Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament;

    4. Instructs its President to forward its position to the Council, the Commission and the national parliaments.


     

    EXPLANATORY STATEMENT

    A. Legal background

     

    Article 349 allows for derogations from EU rules in the outermost regions, in order to partly compensate for their remote location and specific difficulties. This proposal is one of a number of proposals which will apply such derogations in the area of taxation for the duration of the next Multiannual Financial Framework, i.e. 2021-2027.

     

    B. Excise duty on locally produced rum, liqueur and eau-de-vie in Madeira and the Azores

     

    Article 1 of the proposed decision would allow the Portuguese state to reduce the excise duty on locally produced rum, liqueur and eau-de-vie sold in Madeira and the Azores by up to 75% compared to the normal rate. This is a simple extension of the current derogation.

     

    C. Excise duty on rum, liqueur and eau-de-vie produced in Madeira and the Azores, and sold in mainland Portugal

     

    Article 2 of the proposed decision would allow the Portuguese state to reduce the excise duty on rum, liqueur and eau-de-vie produced in Madeira and the Azores, but sold in mainland Portugal, by up to 50% compared to the normal rate. This is a new provision, designed to aid sales of these products which are difficult to produce and sell under market conditions.

     

    D. Definition of the spirits covered

     

    The products covered by the derogations are defined in Article 3, and relate to their Protected Designation of Origin status (for Madeiran rum) or the local origin of the raw ingredients.

     

    E. Reporting

     

    The decision creates an obligation for Portugal to report on the implementation and impact of the derogation.

     

    F. Assessment of the rapporteur

     

    Your rapporteur considers that this derogation from taxation rules is justified by its extremely limited scope, and by the economic difficulties inherent in production in the outermost regions. He therefore suggests that this proposed decision should be approved by Parliament without amendment, under the simplified procedure set out in Rule 52(1) of the Rules of Procedure.

     

     


    PROCEDURE – COMMITTEE RESPONSIBLE

    Title

    Proposal for a Council decision authorising Portugal to apply a reduced rate of excise duty on certain alcoholic products produced in the autonomous regions of Madeira and the Azores

    References

    COM(2020)0240 – C9-0190/2020 – 2020/0118(CNS)

    Date of consulting Parliament

    26.6.2020

     

     

     

    Committee responsible

     Date announced in plenary

    REGI

    8.7.2020

     

     

     

    Committees asked for opinions

     Date announced in plenary

    ECON

    8.7.2020

    AGRI

    8.7.2020

     

     

    Not delivering opinions

     Date of decision

    ECON

    3.7.2020

    AGRI

    7.7.2020

     

     

    Rapporteurs

     Date appointed

    Younous Omarjee

    23.6.2020

     

     

     

    Simplified procedure - date of decision

    16.7.2020

    Date adopted

    16.7.2020

     

     

     

    Date tabled

    22.7.2020

     

     

    Last updated: 2 September 2020
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