Wine Law

THE PROMOTION OF WINE AND TAXATION 451 No. 10574 of 1946), a departmental tax was established in favour of Puno, still observing a difference in the tax treatment of national wine and other spirits – 5 cents per bottle of wine, 10 cents per bottle of wine spirits, 20 cents per litre of alcohol and 1 S/ (Peruvian sol) (= 100 cents) per bottle of champagne –, noting the difference in the favourable amounts for national wine. Later, with Law No. 10625, there is a tax reduction on wine from 40 cents to 20 cents, which was charged to the production, at the time of moving, to the consumption centres; except for spirits and wines exported from the country. However, with Decree-Law No. 10981, the trade of imported wines and spirits is stalled, entrusting its administration to the Collection Department of the Deposit and Consignment Fund, deriving in a certain way the protection of national wine. With Law No. 14729 of 25 November 1963, a tax rate of 4% is established on the gross sales value of alcoholic beverages in Peru, which, in turn, establishes that the tax payment covers cane alcohol, wine, spirits, beer and any similar alcoholic beverage, except for wine and grape piscos of national production, that is, there was preferential treatment, benefitting for national wine in relation to imported. Law No. 15101 extends this tax exemption provided by Law No. 14729, including the so-called generous national champagne and vermouth. In general, these antecedents lead us to specify that a specific tax system was applied in our country from 1925 to 1981, which contributed to the wine industry’s relative boom (Bill 2501/2017). In the 21 st century, with Supreme Decree No. 010-2001-EF, rates of 40% were established for wine spirits or grape pomace, which was considered high, especially for Pisco , another derivative of the grape, which gave rise to an immediate modification. This came in the form of Supreme Decree No. 095- 2001-EF, which established the ISC rate, applicable to various goods included in the subparagraph A of the New Appendix IV of Supreme Decree No. 055- 99-EF 2 , reducing the ISC by 20% for alcohols. According to Congress member Juan de Dios Canchari (representative of Ica, an emblematic region of the wine industry), even though this measure reduced the previous situation, the result of the provision issued in 1999, it did not manage to promote activity, since, in this regard, the fees were high and did not allow them to compete with an unfair market for adulterated and contraband products. For this reason, it was promoted a Bill that assumes promotional measures “in such a way that this activity can progress both in the domestic market and in the foreign, since at present it is completely undercapitalised” (Bill of Congress member Canchari, 2002), a bill that was not approved. 2 Unified Text of the General Sales Tax and Selective Consumption Tax Law.