Impuestos sobre las bebidas alcohólicas: su impacto en las empresas licoreras y recaudación fiscal en el sector norte del Distrito Metropolitano de Quito en el periodo 2022-2023

Abstract

The general objective of this study is to determine the impact of the Special Tax on the Consumption of Alcoholic Beverages (ICE) on tax collection in the city of Quito in the period 2022- 2023. The problem is that while ICE is essential for collecting taxes and regulating alcohol consumption in Ecuador, the illegal alcohol trade is increasing, affecting both public health and tax revenues. Additionally, constant changes in regulations and increasing production costs make it difficult for ICE to invoice accurately, reducing the effective collection of this tax. Recently, the increase in ICE has caused concern in the alcoholic beverage industry by reducing sales of certain types of beverages. To address this issue, a methodology that combines qualitative and quantitative approaches was used. The qualitative approach was based on a review of reports, academic articles and case studies that address this topic, while the quantitative approach analyzed data from institutions such as the SRI, BCE and SUPERCIAS, as well as surveys of companies in the liquor sector located in the north of Quito. A longitudinal design was also used to investigate the variation of the ICE over time, these results were integrated into a descriptive study that provides a description of the tax treatment of the ICE on the issue of alcoholic beverages. The results show that ICE variants have changed consumer behavior, increasing demand for cheaper drinks and reducing sales of higher quality drinks. Key challenges include high taxes, fluctuations in demand and strict regulations that impact the industry's competitiveness and ability to grow. In conclusion, the tax reform in the 2022-2023 period increased ICE tax rates and consequently increased tax revenues. However, the state's goal of reducing alcohol consumption through ICE has not been entirely successful, as consumption of standard beverages continues even as consumption of premium beverages declines. The increase in ICE has had a moderate impact on alcoholic beverage companies, forcing them to adjust prices and reduce investment. However, these companies have been able to offset some of their losses by selling cheaper products, thereby reducing the economic and financial challenges they face.