The industry is calling on the Federal Senate to amend the regulatory text, which was recently approved by the Chamber of Deputies. According to the President of the Brazilian Institute of Cachaça (IBRAC), the tax differentiation based on alcohol content disproportionately favors beer, which accounts for 90% of Brazil's alcoholic beverage consumption, under the premise of reducing overall alcohol consumption.
IBRAC contends that the new rules unfairly penalize Cachaça and other spirits, which make up less than 10% of the market. In contrast, producers of low-alcohol beverages support the measure, as it reduces taxes for products with lower alcohol content.
