somes

Reduced Tax Rates for Traditional Rum in French Outermost Regions

Summary

The European Parliament supports a proposal to allow France to apply reduced indirect taxes on traditional rum produced in Guadeloupe, French Guiana, Martinique, and Réunion until 2027. This measure aims to support the local economy by compensating for high production costs caused by geographic isolation.
9 01.12.2020
Other
economy
finance
taxation
social policy
public administration

Key points

In force from 01/01/2021 Out of force from 31/12/2027
  • Authorization of reduced indirect tax rates for specific French outermost territories.
  • The reduction applies to excise duties and social security contributions on traditional rum produced in Guadeloupe, French Guiana, Martinique, and Réunion.
  • To qualify, the rum must have a minimum alcoholic strength of 40% and be made from locally grown sugar cane.
  • The tax reduction can be up to 50% compared to the standard rates applied in mainland France.
Documents (PDFs)
REPORT on the proposal for a Council decision authorising France to apply a reduced rate of certain indirect taxes on 'traditional' rum produced in Guadeloupe, French Guiana, Martinique and Réunion Guadeloupe, French Guiana, Martinique and Réunion: indirect taxes on 'traditional' rum *
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