We hereby inform the business community and other interested parties that Law No. 7/2025 of December 29 was approved, which introduces amendments to the Excise Duty Code (“CICE”), approved by Law No. 19/2022 of December 29.

Among the amendments introduced, we highlight the following:

i) The application of the rates of the Excise Duty (“ICE”), approved by Law No. 19/2022, have been extended until 2027;

ii) The proportions of allocation of the revenue from the collection of ICE on manufactured tobacco, covered by HS codes 24.02 and 24.03, namely cigars and cigarillos containing tobacco, cigarettes containing tobacco, smoking tobacco (even containing tobacco substitutes in any proportion), and other tobacco products (“homogenized” or “reconstituted”) , in favor of the State Budget and the sectors of Health, Sports, Roads, Energy, Transport, Housing and Culture, have also been changed to 50%, 30%, 15% and 5%, respectively.;

iii) The proportions of allocation of the revenue from ICE levied on fuel taxation, in favor of the State Budget and the Sectors of Roads, Housing, Transport and Energy have been changed to 40%, 40%, 10%, 5% and 5%, respectively;

iv) New tariff codes have been introduced;

v) Article 27(4) of the CICE, which approved reductions in the value of ICE for new manufacturing units producing alcoholic and non-alcoholic beverages with added sugar or other sweeteners during the first three years from the start date of business operations, has been repealed.

The amendments introduced are in effect since January 1, 2026.