Measuring the tax burden on the wine chain in Rio Grande do Sul

Abstract

The aim of this study is to estimate the amount of taxes in the final sale price of the wine. To this, it is disintegrated the cost structure of wine production by identifying what taxes are present in each of the inputs in different parts of the chain. To calculate these results, it is used a mathematical model that allows measuring the taxes on the wine chain, through the transactions realized along the chain. The results showed that 42% of the final price of a bottle of wine are taxes. Among them, it is emphasized the ICMS that represents 55% of the tax burden, the PIS/COFINS representing 18% and the IR that is 16%.