Legislative Assembly proposes tax exemption for artisanal sugarcane spirits

The Legislative Assembly of the Autonomous Region of Madeira has approved a bill to amend the Code of Special Consumption Taxes. The aim is to extend the tax exemption regime and the waiver of declarative obligations to artisanal spirits produced from sugarcane (Saccharum spp.).

The proposal, approved through Resolution of the Legislative Assembly of the Autonomous Region of Madeira No. 27/2026/M, of July 31, will now be presented to the Assembly of the Republic for discussion and approval as national law.

The bill recognizes that the domestic and artisanal production of sugarcane spirit, a traditional practice in several regions, including Madeira, has cultural and historical value. Currently, the Code of Special Consumption Taxes already provides an exemption regime for spirits made from fruit by small producers for personal consumption. However, this exemption did not apply to sugarcane, creating an inequality.

The proposed amendment is inserted into Article 67 of the Code, now explicitly including beverages based on "sugarcane (Saccharum spp.)" in the same regime. The exemption applies provided the production is carried out by a private individual, for consumption by themselves, their family, or guests, without any onerous consideration, and that the raw material comes from a plot of land owned by the producer.

This measure aims to protect and enhance a local tradition, balancing cultural preservation with fiscal control needs.