Restriction on six-pack sales hits industry and taxes

912Views 4Comments Posted 14/06/2020

The  lifting of restrictions on the trade-in alcoholic beverages would kill the illicit increase in the illicit market for and produce tax revenue for the government says The Industrialists Union (SIP) a group representing the industry. Beer industry sales, for example, have fallen more than 50% and  they still have around $30 million in finished product inventory in warehouses and retail stores.

 The losses of the industry and the contributions to the state coffers could be millions, the SIP estimated.

“The purchase restriction measure of a six-pack of beer makes inventory turnover slow, especially the returnable bottle packaging, whose transaction is per box and cannot be executed. Beer is a perishable product and if the inventory in question were to expire, the losses would be irrecoverable, ”said the president of the union, Aldo Mangravita. The alcoholic beverages industry represents approximately 1.3% of the national GDP and generates approximately $ 125 million annually to the treasury as Selective Consumption Tax (ISC) and ITBMS.

It is estimated that for each week of restriction on the sale of alcoholic beverages, the Panamanian State stops receiving approximately $ 2.4 million in these two taxes alone, apart from other taxes paid by the industry such as ISR, Import Tax, CSS, among others. , according to Mangravita.

He also warned that if the restriction on the purchase of alcoholic beverages continues to be prolonged, it will be "unsustainable" for the industry to keep all jobs. The alcoholic beverage industry contributes more than 6,000 direct and 40,000 indirect jobs, which  "could not be guaranteed" if the restriction on the purchase of alcoholic beverages for consumption at home is prolonged,

“The release of home consumption sales would allow consumers to continue to acquire formal products through formal channels without restrictions, maintaining jobs, tax collection and eliminating the incentive for illegal trade and contraband, particularly adulterated and prepared drinks. homemade ”,

Comments 4

Snake Pliskin

Alcohol is pretty easy to make at home if you really want it. Lots of cane and rice in Panama. Not much of a drinker but I would really like to try a REAL pina colada. Dont think many people know what that is anymore. Beer is more complex to make but can be done for a more moderate price with a few imported materials. Wine is super easy though and there are many fruits in Panama. Wonder what mango wine would taste like????

3 months ago

I think people should make their own decisions about drinking. You know the whole freedom of choice thingy. When the government starts using whats best for your health to decide how you live your life then that's tyranny. Oh crap wait that's what we have now!🤔

3 months ago

Acohol sales skyrocketed during March and April un the US and the UK, as welk as ither countries where no restrictions exist. What is better fir public health -- to have consumption increase or decrease by 50 percent?

3 months ago

When they do finally allow sales there is going to be a lot of shitty stale beer being passed. The people will spend what little money they have on alcohols because in times of hardships it's been proven people drink to drown their woes. If the liquor companies and beer companies would have a meeting with El Presidente and offer him monetary and political support you would be surprised how quickly the restrictions on alcohol would be lifted. The industries are cash rich and as the article points out can just cut costs through labor management. distributors, truck drivers and all the cute Colombiana models who work for the industry will be most hurt.

3 months ago
The comments are the responsibility of each author who freely expresses his opinion and not that of Newsroom Panama.
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