Union of Craft Brewers of Peru issues a statement regarding the increase in the Selective Consumption Tax: It cannot come at a worse time

Published Feb 1, 2024

Tridge summary

Peru's Ministry of Economy and Finance has raised the Selective Consumption Tax on items such as beer, cigarettes, and certain alcoholic beverages. The Union of Craft Brewers of Peru has voiced its opposition to this move, warning that it could result in the closure of more than one craft brewery per week and reduce the number of breweries to less than 40% of the current number by 2024. The union is advocating for a specific differentiated tax for the independent craft brewing sector to level the playing field.

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Original content

The Ministry of Economy and Finance (MEF) increased the fixed amounts to be paid for the Selective Consumption Tax (ISC) on beers, cigarettes, tobacco, pisco and some drinks with more than 20 degrees of alcohol. Through a statement, the Union of Craft Brewers of Peru (UCAP) expressed its disagreement. “This increase couldn't come at a worse time. The independent craft brewing MYPE sector ended 2023 with a 20% drop in sales, which led to the closure of around 1 in 4 breweries in Peru during the same period. Considering that Peru has one of the highest ISC for beer in Latin America and the world, and that the Peruvian craft beer sector is consequently the smallest proportionally to that of all our neighbors, it is evident that the tax proposal inhibits development. of the national brewing MYPEs,” they noted. Pisco Sour Day: All the secrets of Peru's flagship drink to celebrate this Saturday For the Union of Craft Brewers of Peru, “with these unsupported tax discounts, State revenue ...

Source: Apnoticias