Romania approves tax exemption for up to 200 liters of home-distilled spirits

The Romanian Parliament has passed new legislation allowing households to produce up to 200 liters of traditional fruit spirits, such as țuică and pălincă, per year without paying excise taxes. This is a significant increase from the previous limit of 50 liters of pure alcohol, which roughly equated to 125 liters of a 40% strength beverage.

To qualify for the full tax exemption, the distilled spirits must be intended solely for personal consumption by the producer, their family, or guests. Commercial sale of the alcohol remains strictly prohibited. Additionally, the fruit used for distillation must come from the household's own orchards, and the process must utilize traditional distillation methods.

The measure aims to support local traditions and has already seen positive impacts in regions like Sălaj, where local authorities report an increase in legal producers. The legislative process faced previous hurdles, including concerns from the head of state regarding compatibility with EU excise tax regulations and procedural issues between the Chamber of Deputies and the Senate.