Wine Law

456 WINE LAW Observing in another table of the National Society of Industries (Table 5), we deduce that the wine applied in Peru is the highest in relation to European, Chinese, South African and even Latin American countries except Mexico. It is notable that countries with a great wine tradition apply the specific system, even more so some are exempt from taxes. Table 5 – Consumption Tax - International Comparison in Producing Countries 8 Country At Value (%) Specific (S/ per litre) Peru 25-30 2.50-2.70 Chile 20.5 not applicable (n.a.) Mexico 26.5-30 n.a. Argentina n.a. n.a. China 10 n.a. Germany n.a. 0 Spain n.a. 0 France n.a. 0.14 Italy n.a. 0 South Africa n.a. 0.94 As of 26 January 2020, Ministerial Resolution No. 042-2020-EF/15, published in the Official Gazette El Peruano , established, in the case of some drinks with an alcohol strength of 20º, a tax increase from 3.40 S/ per litre to 3.47 S/, which is applied to, among others, malt beer, sparkling wine, wines, cider, sake, singani, tequila, spirits, rum, whiskey, vodka, brandy. Thus, wine has suffered another increase. The current Alternative System’ continuous application for determining the ISC applicable to wines brings a series of drawbacks. More serious, though, is the detriment to the wine industry’s growth, for various reasons, for instance, favouring the import of low-end wine with the consequent damage to Peruvian wine, which tries to improve its quality and accustom the Peruvian consumer to drinking wines of increasingly better quality, that is, it reduces competitiveness. Another reason is that, as a consequence of a high tax, informality deepens since the application of 2.70 S/ (12-20) and 3.47 S/ (more than 20) per litre leads to 8 Source: National Society of Industries; adapted by this article’s author.