Romania debates limits on domestic fruit brandy production

The Romanian Parliament is reviewing legislation regarding the domestic production of fruit brandy, such as țuică and rachiu. A recent debate centered on a proposal to increase the annual limit for tax-exempt or reduced-excise production from 50 liters of pure alcohol to 200 liters.

The Senate recently voted to remove the 200-liter provision after the President sent the law back for re-examination, citing that the exemption did not align with European directives. The project has now moved to the Chamber of Deputies for decision-making.

Under current fiscal regulations, households are permitted up to 50 liters of pure alcohol per year for personal consumption, which entitles them to a 50% reduction in the standard excise tax rate, provided the product is not sold. It is important to distinguish between liters of pure alcohol and the total volume of the final product; for instance, 50 liters of pure alcohol is equivalent to 125 liters of a 40% alcohol concentration beverage.

Households using distillation equipment must be registered with the relevant territorial authority and must notify officials of their intent to produce alcohol from their own harvests, specifying the type of raw material and estimated quantities. Failure to comply with these regulations can result in significant fines, reaching up to 100,000 lei.