Taiwan on high gear in dispute on rice wine tax

WINEY COMPLAINTS: The US and EU have expressed concerns over a proposed amendment that would cut the price of a 600ml bottle of rice wine to just NT$25

“If we have to, we could invite [representatives from other countries] to eat rice wine chicken soup.”
 
Sean Chen, vice premier
 
Executive Yuan Spokesman Johnny Chiang (江啟臣) yesterday said the government would continue to communicate with other countries over their concerns about Taipei’s changing policy on rice wine taxation.

The US and the EU have expressed concerns over an amendment to the Tobacco and Liquor Tax Act (菸酒稅法) that, if approved by the legislature, would cut the price of a 600ml bottle of rice wine from NT$50 to NT$25.

The EU has threatened to take legal action with the WTO against the move, according to local media reports.

The amendment was approved by a Cabinet meeting on July 15. The amendment would categorize rice wine as “cooking wine,” with a tax rate of NT$5.4 per bottle, rather than a “distilled liquor” with a tax of NT$29.25 per bottle, as requested by the WTO.

The amendment marked the second attempt by the government to lower the retail price of rice wine, a commonly used cooking ingredient, since prices soared after Taiwan joined the WTO in 2002.

Before Taiwan’s entry into the organization, the retail price was about NT$20 per bottle. Prices had risen to NT$180 by 2008.

On June 1, the price was ­reduced to NT$50 per bottle after the legislature passed a government-­introduced amendment stipulating that taxation on distilled alcohol depended on the percentage of alcohol in the product, replacing the previous mechanism, whereby taxes were based on volume.

Chiang defended the government’s policy.

“It will reduce the financial burden on the public, lessen incentives to produce illegally brewed and low-quality substitutes and ensure public health,” Chiang said.

Vice Premier Sean Chen (陳冲) said the government would seek to persuade other countries that using rice wine as a cooking ingredient is a characteristic of Taiwanese culture.

“If we have to, we could invite [representatives from other countries] to eat rice wine chicken soup,” he said.

A public opinion survey by the government showed that 96.4 percent of the population in Taiwan use rice wine solely for cooking rather than drinking.