RUM TAXES IN THE FRENCH DOMS.

Europe Agri, October, 2007

The European Parliament adopted, on 25 September, a report by Gerardo Galeote (EPP-ED, Spain) which contains a proposal for a Council decision authorising France to apply a reduced rate of excise duty on traditional' rum produced in its overseas departments (DOM), for a quota of 108,000 hectolitres of pure alcohol from 1 January 2007 to 31 December 2012.

This tax measure does not aim to compensate for the lack of competitiveness for traditional rum on the Community markets because of high cost prices. In the three departments concerned (Reunion, Guadalupe and Martinique), this industry generates a revenue of about 250 million and guarantees around 40,000 jobs, 22,000 directly.