The State Sucks Everything Up: Just Like with Soy, Tax Pressure Takes Nearly 60% of the Wine Chain's Earnings

Published Jun 21, 2025

Original content

Although it no longer pays withholding taxes, wine has nothing to envy about soybeans. Argentine wine production also endures a strong tax burden, which is double that of Chile and eats up the profit margins that winegrowers and wineries might have. With data updated to 2025, a Coviar report highlighted that the current tax burden in the Argentine wine production chain represents 57.1% of the pure surplus of a farm and 62.4% of the pure surplus of a winery. This pressure rises to 61.2% for a small farm, or drops to 53.6% for a large farm; while for a small winery it is located at 63.4% and at 58.4% if it is large, the report highlights. Therefore, in addition to being substantial, the tax pressure is concentrating: it eliminates small and medium producers. The calculations of such a high tax burden, which are similar to the tax pressure that soybeans support (from an average hectare the State at its different levels takes 62%, with withholdings that reach 33%), were made by ...

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