Brazil's interim president and Minister of Industry, Geraldo Alckmin, announced that studies suggest the tax burden on wines and sparkling wines will be reduced to around 33% as part of a tax reform.
In Brazil, the interim president and Minister of Industry, Geraldo Alckmin, has stated that studies indicate a planned decrease in the tax burden on wines and sparkling wines to approximately 33%. This change is part of a broader tax reform aimed at reducing the current tax rate, which stands at around 40.5%. This significant reduction is expected to positively impact the beverage industry by making these products more affordable for consumers.
Alckmin's comments were made during the Grape Festival in Rio Grande do Sul, a prominent event that highlights the state's wine production. He emphasized that the government will closely monitor the regulatory developments regarding the selective tax imposed on products deemed harmful to health and the environment. This requirement will categorize certain items under a higher taxation bracket compared to the standard rate, aligning with broader public health and environmental objectives.
The tax reform initiative, including the selective tax proposal, was expected to be forwarded to Congress after the legislative recess; however, there have been delays. Industry stakeholders are hopeful that these changes will be implemented soon, as they would enhance the competitiveness of Brazilian wines and sparkling wines in both local and international markets, fostering growth in this sector of the economy.
