Ecuador's government has decided to temporarily eliminate the excise tax on low-alcohol beverages such as beer during the 2026 World Cup in North America. As a result, local beer prices are expected to fall by more than 20%.
President Noboa Offers Tax Break as World Cup Gift
According to local media including Primicias, Ecuadorian President Daniel Noboa personally announced the measure at an official event held in El Empalme, Guayas province, on Sunday.
Referring to the Ecuadorian national football team's qualification for the World Cup finals, Noboa said, "The government will also provide additional support."
"We will waive the excise tax on all low-alcohol beverages, including beer, during the World Cup," he added. "As a result, beer prices will drop by more than 20%."
The excise tax is a tax applied to certain items such as alcohol and tobacco in Ecuador. Although companies pay the tax itself, it is structured so that consumers effectively bear the cost as it is added to the sale price.
Based on this year's rates published by Ecuador's tax authority (SRI), industrial beer is taxed at $13.62 (about 20,000 won) per liter of pure alcohol, while craft beer is taxed at $1.56 (about 2,400 won). General alcoholic beverages are subject to $10.46 (about 16,000 won) per liter of pure alcohol.
"Beer Chants" in Ecuador: Consumption Set to Rise Further
According to a survey by local polling agency Comunicaliza, 35.8% of respondents said their beer consumption increases above normal during Ecuador national team matches. Some observers suggest that the increase in consumption could grow even larger when the price-cut effect is added.
The measure is also seen as a welcome change for the alcohol industry. Local alcohol companies have consistently requested relief from the excise tax burden, arguing that lower taxes would have a positive effect in curbing smuggling and illegal distribution.
This is not the first time the beer-loving nature of Ecuadorian fans has come into the international spotlight.
During the 2022 Qatar World Cup, when FIFA completely banned beer sales near stadiums, Ecuadorian fans attending the opening match chanted "Queremos Cerveza," meaning "We want beer" in Spanish, drawing international attention.
Meanwhile, Ecuador will play its final group-stage match against Germany at MetLife Stadium in New Jersey at 5 a.m. Korea time on the 26th.
