The Ministry of Economy and Finance (MEF) published a supreme decree approving the modification of the Selective Consumption Tax (ISC) with the purpose of increasing it to 25% on sugary beverages that have 6 grams or a higher sugar content per 100 milliliters.
This modification applies also to beverages, such as water, that have added sugar or sweetener, as informed the minister David Tuesta to El Comercio.
“However, the norm specifies that sugary drinks that have less than 6 grams per 100 milliliters of sugar will maintain a tax rate of 17% for ISC”, the media explains.
Cigarettes and products made from black or blond tobacco will have an ISC that will go from S / 0.18 to S / 0.27 each. As for alcoholic beverages, liquors with 0 to 6 degrees of alcohol concentration will maintain the ISC of S / 1.25 per liter produced and an increase from 30% to 35% according to the sale price.
“In the case of fuels, the supreme decree corrects the current distortion that makes the 97 octane gasohol pay more ISC than diesel. Thus, Diesel B2, with a sulfur content less than or equal to 50 parts per million (ppm), will pay an ISC of S / 1.70 per gallon; while the tax rate for gasoline will vary between S / 1.13 and S / 1.27 per gallon”, El Comercio explained.
New vehicles for passenger transport will also be affected by this norm. Those that have a dual mechanism (gas or electric) will not pay taxes. New gasoline vehicles will have an ISC rate of 10%.