Colombia: Proposal looks to dismantling liquor monopoly

A controversy has been raised by Law Proposal 152, which would bring to an end the nation-wide monopoly of Colombia’s liquor distribution industry, while also possibly reducing taxes on imported spirits.

Colombia’s municipal governments hold a monopoly on the sale of distilled alcoholic beverages, with proceeds meant to be used by authorities to finance health and education services.

Law 152 would alter this system by allowing municipal governments to decide whether or not to maintain their own monopolies on the production and import of distilled alcoholic beverages, and whether to do it themselves or through a third-party.

Concerns have been raised in this matter by the members of the National Union of Workers in the Alcoholic Beverages Industry. The organization has raised concerns over the flexibility of any eventual requirements needed to open a liquor distribution company, which may allow any person (whether Colombian or foreign) to begin producing and selling liquor.

The proposal was partially approved after three debates. The law will have to go through a final round of approval before being forwarded for the President’s approval.

Full Content: El Espectador

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.