Wine Law

448 WINE LAW “suppliers” as “natural or legal persons (...) who habitually manufacture, elaborate, manipulate, condition, mix, pack, store, prepare, sell, supply products (...) of any nature to consumers” (art. IV, “Definitions”, 1-2). Adding and describing later, distributors or traders, producers or manufacturers and importers that fit into the wine suppliers’ activity. All this corroborates that, although wine is considered a drink with alcohol content and when consumed in excess it can threaten health, we observe that it is protected by state policies – laws and regulations sufficient to protect the excesses of the population. Therefore, it is not considered logical to punish the supposed negative externality with high tax rates of the Selective Consumption Tax (ISC in Spanish), even more so, when a mixed tax system, applied since 2013, also disadvantages the growth of this industry; a situation contrary to the current of other countries, which impose a very low or even zero tax rate on wine, allowing the development of the wine industry inherent in wine (aspects detailed in section 3 of this text). 3. LAWS FOR THE PROMOTION OF THE WINE INDUSTRY It is held in the 20 th century, during Juan Velasco Alvarado’ government, with the Decree-Law No. 18386, of 16 September 1970, the National Wine Plan, whose objectives were to promote the wine industry, encouraging the production of wines and piscos of the highest quality so as to achieve a stable export market, and intensify the actions of promotion and technical assistance. In article 1, the commission of the execution of the plan to be developed by the Ministry of Agriculture is appreciated, giving preferential attention to small and medium-sized farmers who benefit from the agrarian reform and require and request technical assistance and genetic material for the expansion of new vineyards or the reconstruction of phylloxerated vineyards. Likewise, the Ministry of Agriculture, giving better cost prerogatives, indicates the sale prices of the vine’s genetic material that only includes the cost of the material. In the following decade, Law No. 24692 of 1987 establishes State measures for the promotion and protection of the wine industry, declaring, on the one hand, the promotion of not only the activity but its derivative products of necessity and public utility as well, thus stimulating their development, and, on the other, the nation’s preferred interest in this industry. Nevertheless, in article 2, it exempts wine from tariffs on the importation of strains for the increase of the wine-growing activity and indicates that the Executive Power will