Increase in the price of the drinks should be inevitable

The sanction of law nº 13,097/14, which changes the model of recovery of PIS/Pasep and Cofins for cold drinks, will cause an increase in the tax burden of the 10% and, according to industry representatives, the increase will be passed on to consumers. The new tax model provides for the calculation of taxes based on the selling price of beer by the industries, and no longer by the volume.
The law includes the segments of beer, water, soft drinks, energy drinks and sports drinks. "The price increase for the consumer will be inevitable," said Fernando Rodríguez de Barrios, President of Afrebras (Association of Manufacturers of soft drinks from Brazil).
The Executive noted that the sector was already pressed by the increase in raw materials costs. "In the case of beer, cans and costs of malt have heavy, why are quoted in dollars. In soft drinks, the higher pressure of costs is in sugar and in PET packaging, "he said. Neighborhoods also cited the increase in gasoline, as a factor of pressure on costs.
"Even industries calculate the impact of the change in the tax burden on the costs, but it is a fact that there will be a readjustment," said neighborhoods. In 2014, inflation measured by the IPCA beer (Broad consumer price index) rose 9.7%, above the 6.4% of IPCA.