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Montevideo, November 18th 2017 - 06:27 UTC

Argentina cancels proposed tax on wine included in a fiscal reform

Saturday, November 11th 2017 - 08:46 UTC
Full article 10 comments
President Macri backed down from a proposed 10% tax on wine and increased tax on champagne following a private meeting with Mendoza Governor Cornejo President Macri backed down from a proposed 10% tax on wine and increased tax on champagne following a private meeting with Mendoza Governor Cornejo
Argentine wine producers famed for its plush Malbec, had decried the proposal’s potential impact on sales as they struggle to recover from small vintages Argentine wine producers famed for its plush Malbec, had decried the proposal’s potential impact on sales as they struggle to recover from small vintages

Argentina’s government has decided to ditch a proposed tax on wine after vineyards complained the measure would cripple the industry, the governor of the country’s top wine-making province said.

 President Mauricio Macri backed down from a proposed 10% tax on wine and increased tax on champagne following a private meeting with Mendoza Governor Alfredo Cornejo.

Wine producers in Argentina, famed for its plush malbecs, had decried the proposal’s potential impact on sales as they struggle to recover from two of their smallest vintages in recent history.

“We understand that we have been heard,” Cornejo’s office said in a statement.

“Macri has confirmed that the wine tax will not go to Congress, so it remains at zero percent.”

Macri’s administration included the wine tax in a bill to overhaul the tax code in an effort to partly offset revenue expected to be lost due to a proposed corporate income tax cut. The legislation is supposed to be revenue-neutral in five years to avoid straining the budget deficit.

Unlike beer, mineral water and sugary drinks, Argentine wine is exempt from tax. But winemakers in the country, which is the world’s sixth-largest producer, argued domestic consumption, already on the decline, would fall further, straining their efforts to boost exports amid high inflation and labor costs.

Winemaker Esteban Baigun, director general of Codorniu Group in Latin America, said he was relieved by the announcement.

“We are happy that the government listens, though we are aware that Argentina is still going through a complex situation,” he said.

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  • Don Alberto

    If idiot child Enrique had been living in Argentina, he would have known that the wine harvests in 2016 and 2017 have been disastrous because of unusually bad weather.

    Last year most growers also had to sell their grapes at below cost - talk of tax cuts to the rich.

    Only an idiot child who hasn't been living in Argentina these past 30 or 40 years can blabber such stupid nonsense.

    Posted 6 days ago +1
  • Stoker

    Shouldn't be too long now before Cristina is choosing some ornaments to brighten up her cell
    http://www.thebubble.com/boudous-alleged-frontman-alejandro-vandenbroele-reaches-plea-deal-with-federal-prosecutor/
    Tick-tock....tick-tock...tick-tock..
    ;-D

    Posted 2 days ago +1
  • Zaphod Beeblebrox

    “But I'm sure he can explain what he meant himself.”

    Or maybe not. ;-)

    Posted 1 day ago +1
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