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EU investigates into legality of Taiwan rice wine price drops

EU investigates into legality of Taiwan rice wine price drops

European Union (EU) said it would take proper action upon Taiwan government’s decision o lower the price of red-label rice wine beginning Sept. 16 after performing analysis on related laws, the local media reported Sunday.

European Commission reiterated that the amendment on taxation system proposed recently by Taiwan government had resulted in price discrepancy in imported distilled spirit products for the draft lowered the tax rate on Taiwan rice wine greatly.

The proposal, according to EU, is against the 3rd article of General Agreement on Tariffs and Trade that treatment for products imported from other nations should be at least equal to that applied to domestic products.

As for whether the EU would consider a legal action with World Trade Organization (WTO) against Taiwan, the commission’s reply stating that “I cannot be more precise,” according to the report.

The EU also expressed regret that Taiwan failed to consult its major trading partners before its move, which failed to comply with the obligation that Taiwan should undertake as a member of WTO.

The Executive Yuan passed the amendment draft of Tobacco & Alcohol Tax Law on July 15, planning to adjust the taxation on rice wine from distilled spirit category to cooking wine category.

The levies on 0.6lit rice wine would greatly drop from current NT$29.25 to NT$5.4, while the sale price of rice wine is expected to cut half from NT$50 to NT$25.





Updated : 2021-04-13 04:18 GMT+08:00