Pisco Guild

Pisco Guild: $4,000 bottles would rise to $6,000 with candidate reform

«If the tax is raised, consumers will be the most affected,» said Pisco Chile’s president, Fernando Herrera.

Source: La Segunda Daily, 26.06.13

The controversy caused by the announcement of tax reform made Thursday by presidential candidate Michelle Bachelet in the business world also has uneasy liquor producers and distributors. The manager of the Pisco Producers Association, Fernando Herrera, criticized the two-and-a-half times increase in the alcohol tax proposed by the candidate, noting that «if the tax is raised the most affected will be consumers».

The leader explained that the increase will cause «for example, a $4,000 reserve pisco bottle to rise to $6,000.»

The leader of Pisco Chile noted that he did not know the scope of the measure, since «it is not known whether it will be an even tax, or it will be applied to certain spirits, or whether it will be only for those with higher alcoholic graduation». He added that «it is not known whether this will replace the current tax or be complementary.»

«When entering a restaurant you always have the possibility to choose between having a beer, a glass of wine, or a pisco sour. If this tax affects only one type of liquor, it will mean practically taking it off the market,» Herrera said.

It’s unfounded to say that alcohol is as harmful as tobacco

On the other hand, the leader of the pisqueros emphasized that he disagrees with the argument given to justify the rise in the tribute. According to the tax adviser to Bachelet candidate Michel Jorratt, «alcohol consumption is as harmful as that of cigarettes.»

«With such a statement, it is putting at stake not only fish, but the entire national wine industry producing alcoholic beverages,» Herrera said.

He explained that this statement was unfounded. «Bachelet, during his previous tenure, supported the sector, through different joint actions for the internationalization of the industry, hopefully it has not changed its vision,» he said.