Wine Law

454 WINE LAW Table 1 – Proposed ISC Taxes 4 Tariff Items Products Soles per litre 2204.10.00.00 Sparkling wine 1.50 2204.21.00.00 Other wines in containers with a capacity less than or equal to two liters 1.50 2204.29.90.00 Wines in containers with a capacity greater than or equal to two liters 1.50 Observing a linear tax treatment without complications protected by the specific system, a Bill that did not have an echo, despite the fundamentals that supported these projects. In Bill No. 2501/2017-CR, an example of current ISC application is made in the foundation national vs imported , under certain assumptions that are indicated in the tables that were prepared and that appear in the aforementioned Project, noting an unfavoirable difference in the payment of the tax on national wine production, with advantages for imported wines using the alternative system in force (Tables 2 and 3). Table 2 – With Mixed ISC 5 National Wine (S/ per 750 ml bottle) Imported Wine (S/ per 750 ml bottle) Prime cost 9.90 Tax Value (CIF +6%) 9.90 Operating Expense + profit 7.00 ISC 2.50 S/ per litre 1.88 ISC 25% 4.23 Nacionalised value 11.78 Sales value 21.13 Operating Expense + profit 7.00 Sales value 18.78 4 Retrieved from Bill No. 2501/2017-CR and adapted by this article’s author. 5 Retrieved from Bill No. 2501/2017-CR and adapted by this article’s author. From Table 2, it can be seen that the application of an alternative system – such as the one incorporated by Supreme Decree No. 092- 2013-EF and modified by Supreme Decree No. 167-2013-EF – generates that imported wines with a value sales per litre less than or equal to 10.00 S/, the Specific System is applicable; resulting in a lower ISC (1.88 S/) compared to the ISC applied to wines produced in the country (4.23 S/), to which a value system will be applicable. For these purposes, it is important to note that the example starts from a scenario in which: (i) both imported wine and that produced in the country have the same prime cost per bottle and (ii) that it is treated in both cases, of the same volume (750 ml bottle) (Source project No. 2501-2017).