The Ministry of Economy and Finance (MEF) has implemented an increase in the Excise tax (ISC) applicable to high demand products such as beer, cigarettes and pisco. This measure, which seeks to align taxes with recent accumulated inflation, will come into force from March 2024.
In an effort to adapt to economic variations and ensure efficient tax collection, the MEF has decided to review and adjust the ISC. This update, planned to be implemented gradually, not only reflects the adaptation to inflation of the last two years, but is also part of a strategy to not negatively affect the post-pandemic economic recovery.
By how much will the cost of beer, pisco and cigarettes increase?
The products whose prices will suffer a variation due to this adjustment are::
Products will experience a variation in their prices. Photo: MEF
How will the price update be carried out after the ISC increase?
The increase in the ISC for beer, cigarettes and pisco is a direct reflection of the MEF’s fiscal policy to adapt to current economic realities. A gradual implementation schedule is expected to be announced in February, with the aim of mitigating any adverse impact on the economy. This update is based on the percentage change in inflation, marking the first time some products have received an adjustment since 2021 or 2022.
What did the MEF say about the increase in the Selective Consumption Tax?
The head of the economics portfolio, Alex Contreras has emphasized that this measure has the main purpose of increasing tax revenues, which experienced a significant drop during 2023. In addition, it assured that transparency will be maintained in the way in which this adjustment will be reflected in final consumer prices, guaranteeing that Taxpayers are fully informed about how this change will affect the cost of these products.
What is the Selective Consumption Tax?
The Selective Consumption Tax is a tax that mainly affects products such as alcoholic beverages, cigarettes or fuel, among others. Its purpose is to discourage the consumption of these products due to their possible negative effects on the personal, social or environmental level. It is worth mentioning that, by law, updating the ISC It is carried out regularly each year with the purpose of maintaining the tax burden.
When was it done the last adjustment of the Excise tax?
Through the Ministerial Resolution No. 021-2022-EF/15the Ministry of Economy and Finance (MEF) updated the fixed amounts for products subject to the Selective Consumption Tax in 2022. This adjustment included a small increase in taxes on three goods such as cigarettes, alcoholic beverages with 20 degrees and pisco, with respective increases of S/0.01 , S/0.08 and S/0.05.
Source: Larepublica
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