MEF raises the ISC but beer will rise less than S/0.20 in the year

After two years, the Ministry of Economy and Finance (MEF) decided—through Ministerial Resolution No. 030-2024-EF/15—to update the fixed amounts of the Selective Consumption Tax (ISC) from cigarettes and alcoholic beverages, such as beer and pisco.

Thus, from next March 1, the ISC that applies, for example, to a liter of beer will go from the current S/2.31 to S/2.51. This will mean that the 620 ml bottle (the most consumed in the country) will have an increase of less than S/0.20. In this way, the MEF predicts that the liter of beer sold to the public will go from S/9.26 to S/9.50, a difference of S/0.24.

An element that the minister highlighted Alex Contreras is that the increase in the ISC will be progressive and quarterly. Thus, the adjustment of S/0.21 in the liter of pisco (which will go from having an ISC of S/2.27 to S/2.48) will not be immediate. Along these lines, he added that In order not to affect the recovery of the economy, a schedule will be published of gradual application of the specific ISC in February.

In this regard, Pedro Francke, former Minister of Economy, highlighted that the ministerial resolution speaks of a full increase from March 1, however, taking into consideration the details made by the MEF, it should be understood that a new legal device will be issued with the settings.

Reasons for the rise

“(…) he State has suffered a significant drop in income, the worst in history without the pandemic. What we are doing is recovering tax revenues gradually,” Minister Contreras justified this measure that has unleashed strong criticism from the business sector, specifically from winemakers, mypes and restaurants. The industry also joined them, with Backus at the helm.

For Francke, there is an important element in the MEF announcement and that is that It is recognized that there is a serious problem in tax revenues, but that should rather be addressed through measures that significantly improve collection, such as adjusting the mining tax and other direct taxes. “The emphasis should be placed there, because raising the ISC will have a limited impact,” he asserted.

César Fuentes, director of the Master’s Degree in Public Management at ESAN, agrees with this, as he specified that the ISC is only 5% to 6% of the total collection, therefore, its increase will mean that the State generates “a little” collection. elderly.

On the other hand, he ruled out that the increase in the ISC on beer or cigarettes would have an impact on inflation, because they are not significant products in the economy. consumer basket. “What moves the needle is a change in food or transportation,” she stressed.

Regarding the concern of the wineries, Fuentes explained that although there could be less demand for alcohol or cigarettes, but by increasing the price the net effect would be the same. “I think it’s an extreme concern,” he said.

Unions ask to leave the ISC increase unaffected

Various unions raised their voices in protest against the measureconsidering that the MEF It goes against the grain of the economic reactivation, especially of small businesses.

For winemakers, beer represents approximately 30% of their income. From 300,000 to half a million wineries would be affected. Meanwhile, restaurants indicated that products taxed with the ISC represent between 25% and 30% of their sales. The unions ask to leave the measure unaffected.