Wine Law

THE PROMOTION OF WINE AND TAXATION 457 unnecessarily expensive products, such as table wine or sangria (which is prepared with wine) – both of common or popular consumption because they are cheaper. This, of course, can turn in the opposite direction of the health preservation the Government wants, since it can force the consumer to drink adulterated wines or mixtures harmful to the health, turning the cure of the disease into another even more serious disease. Conversely, raising the tax on wines due to the higher degree of alcohol means that the producer limits himself to producing quality wines, preferring those of lower quality or range, discouraging the intention of increasing quality wines. Consequently, as expressed by various small treatises based on studies on economic theories applied to taxation, the application of specific taxes to wine would allow the appropriate incorporation of externalities and prevent prices from falling and causing losses to the treasury. In Ecuador, concerning alcoholic beverages, a specific rate of 6.93 US$ per litre of pure alcohol content is applied, which has been, on the one hand, a success (Comex Perú). On the other, the treatment of the tax collection between national products must be homogenised with imported ones, paying for the impartiality and equity in the wine market. Finally, in relation to this section, the specific tax would facilitate the collection’s control since it is simpler than to control a system that offers a variety of prices and more complex operations. 5. CONCLUSIONS Although Peru’s wine industry has had, over the years, a disparate treatment from the various governments, in addition to the incongruity of promotion laws and taxation that have not allowed an adequate development of Peruvian wine, it is believed that, once this problem has been overcome and by implementing an adequate ISC, it will be in an expectant situation. This would facilitate the sector’s adjustment and growth, with new strategies for its consolidation since, according to a study, Peru is a country with a relatively recent wine-making tradition, both in consumption and in production for it is condescending to a beer tradition (Cerezo, 2019). Wine consumption, says the study, was, in the 1990s and early 2000s, associated with the wealthiest class sectors 9 (A and B), but as the economy grew in the recent decades, a rearrangement happened in the demand of the subsequent NSE sector C, until it reached 30% of the population, driving the wine supply to improve its quality, variety and availability. 9 Economic Sector Level (NSE in Spanish).