Beer and Booze Go to Battle as Brazil Wraps Up Tax Overhaul (1)

A new “sin tax” is splitting Brazil’s alcoholic beverage industry as beer producers and liquor manufacturers wrangle over how much they should have to pay.

Brazil’s association of beermakers, which represents companies like Ambev SA and Heineken NV, argues they should pay lower rates under the levy meant to limit consumption of goods considered harmful to health or the environment because their products contain less alcohol by volume. But the Brazilian Association of Liquors, which lists Bacardi Ltd., Beam Suntory Inc. and Diageo PLC among its members, has pushed for constant rates across the industry.

The boozy battle ...