Post-WTO tax laws on alcohol are expected to push domestic alcoholic beverage off store shelves, to be gradually replaced by imported products, a market insider said yesterday.
"Currently, 80 percent of Tai-wan's alcoholic beverage market is supplied domestically, with the demand for imported beverages at less than 20 percent," said Chen Chun-an (陳春安), chairman of Drink, Wine and Spirits Co Ltd (橡木桶洋酒), a local alcohol distributor with 33 "Drinks" outlets around the nation.
PHOTO: CHEN CHENG-CHANG, TAIPEI TIMES
According to the Import Trade Administration under the Board of Foreign Trade, once Taiwan joins the WTO, taxes on imported hard liquor will be reduced 8 percent and the tariff will drop to zero.
In addition, although the new tariff charged on foreign wine will be lowered to 10 percent, "prices of foreign wine are expected to rise about 25 percent," Chen said.
The most significant price change, however, will be seen on the local cooking staple "red label" rice wine (紅標米酒), which is expected to jump in price from the current NT$29 per bottle to more than NT$100.
Meanwhile, Chen said, the opening of the local alcohol market also means that foreign rice wines, such as Japanese Sake (
Before this change, foreign and local rice wine were exclusively distributed by the Taiwan Tobacco and Wine Monopoly Bureau.
"Since more foreign alcohol will be allowed to be imported into Taiwan and prices of domestic products will rise, we believe the public's drinking habits will become more international," Chen said.
Chen said a survey done by his company found whisky to be the most popular imported alcohol in Taiwan, followed by wines at 26 percent and brandy at 12 percent.
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