This created
higher tax amounts for importers even if the value of the wine was the same, creating an advantage to
domestic wineries. In other words, both local and foreign wines paid the same rates for excise tax,
municipal tax, health tax, and value added tax (VAT). However, the tax rates were all based on the
summation of the imported wine, CIF, and tariff. This summation increasingly punished the importer
of wine with each tax level. In Table 2 there can be found a comparison of how the domestic and
foreign wines paid tax for the same bottle of wine. The foreign wine begins at a higher price due to
CIF expenses