While the government announced recently that it would start to impose new tax laws on domestically made and imported tobacco and alcoholic products after July 1, lawmakers warned that the Legislative Yuan would put the law on hold until Taiwan is allowed to join the World Trade Organization (WTO), the Taipei Times' sister publication, the Chinese language Liberty Times reported yesterday.
The Ministry of Finance, the Ministry of Economic Affairs, and the Cabinet-level Council of Agriculture last week reached a consensus to start imposition of the tobacco and alcoholic drink tax independent of Taiwan's entry into the WTO. Under the new tax laws, the tax rates of alcoholic drinks will depend on the alcoholic content and retail prices of locally-made rice wine are expected to jump over four-fold from NT$21 per bottle (600 cc) to around NT$100. In addition, the retail price of locally produced cigarettes will rise by about NT$5 per pack (20 cigarettes).
But KMT lawmaker Chu Li-luan (
The report also said lawmakers are planning to demand that the Executive Yuan not raise the price of domestically-made alcoholic drinks, particularly rice wine, without advanced discussions with the Legislature. "If the Executive Yuan cannot respect our opinions, we [the legislature] will try to [delay] the new tax laws ... and are not excluding the possibility of stopping the review of the Taiwan Tobacco & Wine Board budget," the report quoted Chu as saying.
Early last month lawmakers expressed their opposition to the rice wine price hikes expected after the ROC enters the WTO. Raising the price of rice wine -- a mainstay in Taiwan cooking -- is deeply resented by much of the local population.
Much of the debate has centered on whether the liquor, different from sorghum spirits meant for drinking, should be listed as a distillery wine and subject to the high taxes of the distillery category. The result of the classification is expected to send price of Taiwanese rice wine skyrocketing.
The controversial issue sparked rampant hoarding of rice wine in Taiwan last year.
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