close
Share with your friends

France: Tax breaks for rum produced in French overseas territories (EC public consultation)

France: Tax breaks for rum

The European Commission is holding an open public consultation concerning its evaluation of tax breaks for rum produced in French overseas territories. The consultation is intended to explore ways to update the tax regime supporting rum producers in Guadeloupe, French Guiana, Martinique, and Réunion.

1000

Related content

Reduced excise tax (duty) rates have been applied to rum produced in specific French “outermost regions” since 1923. The beneficiaries of the reduced rates are Guadeloupe, French Guiana, Martinique, and Réunion. The reduced rates were renewed in 2014 and will continue to apply until 31 December 2020. France has requested an extension on the period of application of the reduced rates beyond 2020.

As noted in the EC release, the French outermost regions are part of the European Union and operate under its laws and obligations. The EU has recognized that the outermost regions face specific challenges because of their size and remoteness, and allows for a system of reduced rates.

The public consultation is intended to gather information as to whether the reasons for the reduced rate system (which relate to the importance of traditional rum to the economies of the French outermost regions, and the higher costs associated with its production in these regions) still exist, and whether the policy adheres to EU treatment. 

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal