Posted On 01 Nov 2016
A price reduction on liquor arriving from the European Union (EU) will be one of the consequences of the multiparty trade agreement signed between Ecuador and the block, according to importers. The agreement states that after coming into force, scheduled for January 1, 2017, the tariff elimination for spirits will be immediate. Currently, alcoholic beverages entering the country pay a combined fee of 1% plus USD 0.25 per degree of alcohol.
According to Felipe Cordovez, head of the Association of Importers of Spirits, both duties will be deleted. However, while safeguards are in effect, the taxed spirits continue to pay the percentage determined by type. It is necessary to add the payment of the value added tax (VAT) and the special consumption tax (ICE) to this. Nevertheless, there will be a reduction in prices, which differ depending on the type of liquor. “In the case of whiskey, for example, it will be the half of the current price.”
The import of spirits from the EU, according to the Association, now represents 10% of the total, far from what it was in 2012. The tariff and tax adjustments made by the government affected the sector, said the businessman.