Craft Beer Taxes

We know that the craft beer search using the best products available in the market to make a quality product with the best possible taste and does not use shortcuts to reduce their costs.

But everything has a cost to be paid.... Literally!

By nature the craft brewery has a power less than buying a world giant, thus obtaining raw material costs, and higher logistics services, burdening the final product cost.

As we said here, taxes are a major villain in Brazil when we speak of this golden liquid, representing more than half of the sale value!

But some countries use the system of taxes to encourage growth of craft breweries because they believe that they are beneficial to the economic dynamics of the country, leading to the creation of jobs in the local community and encouraging the consumption of products manufactured in the region by small businesses that reinvest all their profits in the region itself.

In Brazil, the tax paid by a giant brewery is exactly the same as a small craft brewery paid. Even in recent months, the government has not approved the inclusion of microbreweries in the existing design of smaller and simpler taxes for small businesses.

Some countries around the world show how you can encourage the growth of craft production.

In the United States, smaller breweries have a sensitive discount from federal taxes. As everything is great there, the numbers are impressive in this market. Need a brewery producing less than 2 million barrels (over 230 million liters) to be eligible for this tax rebate. They pay 61% less federal tax on the first 60,000 barrels (equivalent to 7 million liters!!!!!).

In Switzerland, a microbrewery does not pay taxes if you sell less than 800 gallons per year.

And depending on the annual production volume, has a discount on federal tax:

Annual production (hl)                  Tax Discount

Less than 20,000                               40%
Between20,000 and 30,000                30%
Between 30,000 and 40,000               20%
Between 40,000 and 50,000               10%

That is, if the brewery produces less than 2 million liters of beer per year, it pays only 60% of federal tax.

And this practice is not unique to these countries.

Countries such as Austria, Belgium, France, Germany and the Czech Republic have also created tax rebates for smaller producers in order to encourage the creation of new business!

And in Brazil? Still trying.... but we can not lose faith!


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