The Ministry of Finance said it is planning to increase the allowance for duty-free alcohol brought into the country by travelers for their personal use from the current 1 liter to 1.5 liters.
When the regulation is changed, it would take effect in the first quarter of next year, a ministry official said recently.
Photo: CNA
Currently, the allowance for duty-free alcohol for personal use is 1 liter per incoming traveler, with no limit on the number of bottles and no requirement for customs declaration.
Passengers who exceed the duty-free limit must declare the alcohol, otherwise they risk confiscation and fines at customs, according to the current regulations.
The ministry is now planning to increase the duty-free allowance, taking into account the relevant regulations in other countries, tax implications, and opinions in Taiwan's alcohol and import industries, the official said.
According to a recent Customs Administration survey, the duty-free allowance for alcohol in Thailand, Indonesia, Hong Kong and Macau is 1 liter per inbound passenger, while in China it is 1.5 liters, and in South Korea and Singapore it is 2 liters.
In Vietnam, the duty-free limit is 1.5 to 3 liters, depending on the alcohol percentage, while Japan allows three bottles of less than 760ml each, which is about 2.28 liters in total.
In the US and Australia, the duty-free allowance for alcohol is 1 liter and 2.25 liters respectively.
The UK allows incoming travelers to bring in a maximum 42 liters of duty-free beer and 18 liters of grape wine.
If Taiwan raises its duty-free limit for alcohol to 1.5 liters, the total tariffs, business taxes, and tobacco and alcohol taxes would drop by millions of New Taiwan dollars per year, the ministry said, citing an estimate of 12 million incoming travelers annually.
The ministry official said it had been considering increasing the duty-free allowance to 2 liters, but has settled on 1.5 liters after careful evaluation of the opinions of associations in the domestic alcohol and import industries.
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