The Commission for the Wine and Liquor Industry (Civil) asked the Government of Claudia Sheinbaum to make changes to the laws so that the alcohol content tax is charged, because the collection increases, reduces tax evasion and the illegal market.
“We celebrate the statements of President Claudia Sheinbaum regarding the disposition of the Federal Government to dialogue on proposals for new collection schemes for the alcoholic beverage sector,” said the agency’s director, Panambí Garcés.
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“As an industry, we propose that by focusing the tax on alcohol content, and not on the price of the product, we will promote a system that pays for collection and supports the decrease in illegality,” he said.
He added that the proposal for modernization of the Special Tax on Production and Services (IEPS) applicable to alcoholic beverages is necessary, with the aim of traveling to a collection scheme based on the alcohol content by volume and not on the value of the product.
“This model would allow greater transparency, administrative simplicity and certainty for both tax authorities and taxpayers,” said Civyl.
In the new fiscal scheme, it would be charged only once at the time the producer or importer makes the first sale of the drink, without deductions or accreditations that can generate collection losses for the State.
The current tax scheme for this sector has not been updated in more than forty years, said the business agency.
He recalled that the modernization proposal is aligned with the commitment of the Government of Mexico not to create new taxes or increase existing ones, while seeking to strengthen the efficiency and equity of the fiscal system.
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The commission pointed out that the advantages of adopting an ad-quantum tax scheme are multiple in terms of collecting efficiency and public policy.
He indicated that the tax would be concentrated in the first links in the value chain: “IEPS would apply only to manufacturers, producers, packagers and importers, eliminating their collection in later stages such as supermarkets, wholesalers, consumption centers and final consumers.”
It would also significantly reduce the control points and facilitate the work of the SAT.
The new model to collect the alcoholic beverages would reduce tax evasion and strengthen the formal market.
“By limiting the collection points, evasion opportunities are reduced and the illegal market that today operates with lower costs when evading taxes and regulations is discouraged,” he said.
“Taxing according to the alcohol content and not for the commercial value of the drink ensures proportional and progressive treatment,” he added.
He added that whoever produces or consumes drinks with greater alcoholic graduation pays more, which eliminates distortions and privileges in the current system, he explained.
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With the new fiscal strategy there would be administrative efficiency: “This model facilitates the operation for both the industry and the tax authorities, eliminating complex accreditation mechanisms and strengthening the traceability of the tax.”
He indicated that studies from the alcoholic beverage sector reveal that the change to an ad-quantum system could increase public income not only by IEPS, but also due to greater VAT collection, eliminating deductions that currently reduce the taxable base.
“By establishing a proportional tax to alcohol content, more responsible consumption is promoted and the harmful use of beverages with high alcoholic graduation is discouraged, contributing to public health policies and damage reduction,” he added.
“The implementation of this model would represent an advance towards a more fair, modern and efficient tax system, which strengthens collection from both the perspective of the State and the productive sector,” he said.
