06/17/2024 – 23:01
“Want a dose of reality?” This is the motto of the campaign led by Vital Strategies, an international public health organization also present in Brazil, which aims to impact parliamentarians and society in relation to the inclusion of alcohol in the Selective Tax proposed in the tax reform project.
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The tax reform project in the regulatory phase (PLP 68/2024) in Congress – a regulation that should be voted on at the beginning of July – provides for an increase in taxes on products and services considered harmful to health and the environment, such as alcohol, cigarettes and sugary products, among others. Called Selective Tax, it was nicknamed the “sin tax”.
The organization has just released the results of a survey that shows the population’s support for the sin tax. The survey carried out with Brazilian adults revealed that 61% of those interviewed declared themselves in favor of a tax to reduce alcohol consumption, with 62% agreeing with increasing prices as a way of promoting this reduction, as they believe that the higher cost would lead to people drank it less.
The survey also showed that 67% consider alcohol to be relatively cheap, 77% of those surveyed pointed out that the government is responsible for tackling the harm associated with alcohol and 65% think that the industry interferes in alcohol policy.
The Vital Strategies campaign envisages advertising actions along the lines of anti-smoking campaigns, with the dissemination of strong images about the damage caused by alcohol, such as cancer, violence and traffic accidents.
Industry reacts
The “sin tax” proposal may be well accepted among the population in principle, but in the productive sector the vision is different. The beer industry has promoted another movement in relation to increasing taxes on its products. The “Beer is not a Sin” campaign, launched during a sector event this June, involves a website dedicated to the topic and an online petition.
The brewing industry says it is “an injustice to one of the most important sectors of the economy”, and highlights that Latin America pays the highest burden and any increase will reflect on the entire chain, which, according to its representatives, could impact the generation of jobs, innovation and sustainability initiatives.
“In the last ten years the beer sector has expanded, created jobs, brought new products to the Brazilian population and innovated a lot. For this positive scenario to continue, fair regulation is essential, which aligns our tax system with the best international practices”, argues the executive president of the National Beer Industry Union (Sindicerv), Márcio Maciel.
The sector defends the adoption of progressive rates for the selective tax, according to it, it would follow international practices, the need for a mechanism for gradual implementation of the new tax.
Furthermore, the sector asks for exemption from the selective tax for companies included in Simples, regardless of the drink produced. “The exemption from IS for small producers is crucial to continue stimulating entrepreneurship and the positive impact on the economy and society”, says the campaign website.
The campaign draws attention to craft beers, which would suffer the greatest impact from the new taxation. According to the feeling, craft beer, produced on a smaller scale and made locally, “is a cultural expression and a heritage of our country”, and that one in every seven Brazilian municipalities has a local brewery.
They also argue that artisanal production generates more than 2 million direct and indirect jobs and generates more than R$50 billion in tax revenue and drives local and family businesses. “By imposing a tax on craft beer, we risk overburdening producers and making access to this market difficult for new entrepreneurs. This could lead to the closure of small breweries and the loss of jobs, harming the economic development of entire regions,” the campaign states.
Furthermore, the beer industry assesses that the increase in taxes – and consequently in the price of products – could lead some people to opt for lower quality products or even encourage clandestine consumption.
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