The Commission for the Wine and Liquor Industry (CIVYL) said that the collection of the Special Production and Services Tax (IEPS) could be increased by 70 percent in alcoholic beverages, if it is traveled to a scheme based on the alcohol content by volume and not on the value of the product, said Panambí Garcés, general director of the organism.
“It is estimated that due to the change of fiscal scheme, about 70 percent more taxes would be taxed for alcoholic beverages today,” said the directive.
Garcés explained that the transition to collect IEPS in alcoholic beverages of a scheme based on the alcohol content by volume, and not on the value of the product, is alienated with the commitment of President Claudia Sheinbaum Pardo so as not to create new taxes or raise new rates.
“On the contrary (the modernization of the fiscal scheme) improves collection efficiency and reduces tax evasion due to the collection of the current scheme,” he said.
In 2024, the Tax Administration Service raised 75 thousand 100 million pesos for the collection of the Special Tax on Production and Services in alcoholic beverages.
According to the Civil Director General, with the proposal to collect the content of alcohol, and not with the price of the product, 123 thousand 574 million pesos would be collected for the collection of the Special Tax on Production and Services in Alcoholic Beverages.
“We support this proposal from the Commission, we even propose the modernization of the collection of the Special Tax on Production and Services in alcoholic beverages for some years,” he said.
The collection of the Special Tax on Production and Services is much more effective when done considering the content of alcohol and not with the price of the product, he said.
According to a study by the College of Mexico, alcoholic beverages are widely used fiscal instruments to collect, so there is collection of the AD-VALOREM Tax and the Ad-Quantum tax.
The Ad-Valorem tax is defined as the one that taxes the value of the product, so “it is calculated as a percentage of the sale price, either from the price to the final consumer, the wholesale or factory price”.
The ad-quantum tax taxes the amount of the product (in this case, of alcohol content) regardless of the price. It is expressed according to the amount of alcohol.
“The majority of OECD economies tax alcoholic beverages through AD quantum taxes, on the other hand, AD VALEM schemes predominate in emerging economies,” according to the COLMEX.
Fiscal modification changes taxes incentives, because it is charged in producers, packagers and distributors, Panambí Garcés mentioned.
He added that the collection of IEPS is diluted throughout the sales chain, so they propose “to be done in a first disposal and those who produce and package it in Mexico and the importers from abroad would be paid.”
The directive said that this strategy allows the reduction of the number of taxpayers with the new fiscal scheme, so you generate a benefit for not having an incentive of having the diluted tax and having many people who cannot contribute paying.
“By decreasing incentives for evasion there is a benefit to the consumer, because we no longer know when the black market is,” he said.
In addition, Garcés said, a simplified tax collection is made, since the consumer would be sure of buying and paying an alcoholic beverage of lawful origin and complies with all sanitary standards.
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