Singapore woos international wine industry with Government’s waiver(1)
Exhibitors at Wine for Asia 2009 set to benefit from lower cost of
participation at Asia抯 premier wine exhibition
5 March 2009, Singapore ?Singapore is wooing international wineries
and exporters to participate in Wine for Asia 2009 with the
Singapore Government抯 waiver of taxes and Goods and Services Tax
(GST) on wines to be exhibited. The tax savings translate into lower
costs of participation for exhibitors. This is an added draw for
wineries and exporters ?who want to get a share of the Asian wine
import pie ?to take part in WFA, which is a platform for them to
make inroads into the region.
WFA, the region抯 most comprehensive wine exhibition, is expected to
draw 350 international and local exhibitors occupying a total floor
space of 5,800sqm. About 5,000 trade visitors from Asia and the
Pacific are expected to turn up at the show. The exhibition, to be
held at Suntec Singapore from 22 to 24 October, is organised by MP
Wine Resources, a joint venture between MP International and Wine
Resources. This is the seventh edition of the show.
The new tax exemption incentive is granted on up to three bottles of
wine per label per day. For a normal exhibitor showcasing between 20
to 30 labels, this will translate into a saving of between $1,800 to
$2,700 for a three-day event like Wine For Asia ?a substantial
savings for the exhibitors that will encourage them to bring in more
labels. The savings overall are likely to be between S$630,000 and
about S$1 million in total.
The tax exemption will also bring Singapore more in line with
countries hosting similar wine trade events.
The Government抯 recent Budget announcement on the exemption of duty
and GST on wines on exhibition and auctions is intended to take into
account the effects of the current recession and to promote wine
trading activities and to help Singapore抯 wine industry.
Already, wine promotion agencies based in Singapore, in their
feedback to WFA organisers, have lauded this new initiative. Most
felt that with the reduced cost, wineries will be able to showcase
more wines at trade exhibitions which will be a win-win outcome for
both the wineries and the buyers. Leading the foreign participation
at WFA 2009 will be Austrade and Sopexa, which will organise the
Australian and French pavilions respectively.
