Understanding Excise Price Calculation for Concentrates, Powders, Gels, and Extracts

Ministerial Decision No. 1 of 2025, issued on January 3, 2025, extends its clarifying influence to the calculation of excise prices for specific types of goods: concentrates, powders, gels, and extracts that can be transformed into carbonated, energy, or sweetened drinks.

This particular aspect of the decision provides a clear methodology for determining the Excise Price, which is crucial for accurate tax imposition.

According to the decision, the Excise Price for these goods will be the higher of two values: either the price published by the Authority in a standard price list, or the “Designated Selling Price to the retailer” declared by the importer or producer.

It’s important to note that this Designated Selling Price should be calculated before any discounts or offers are applied, and after deducting any included tax. This dual-criteria approach ensures that the excise tax is levied on a realistic and standardized value, preventing potential under-declarations.

Furthermore, the decision explicitly mandates that taxable persons must maintain comprehensive records to substantiate both the “Designated Selling Price” and any deductions made.

This emphasizes the importance of transparent and verifiable pricing structures for businesses involved in these product categories.

summary

Gain insights into the updated excise price calculation for concentrates, powders, gels, and extracts used in beverages, as clarified by Ministerial Decision No. 1 of 2025. Understand the implications for your pricing and record-keeping.

Disclaimer: The Content offer general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for their interpretation and actions based on this information, at their own risk.

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