Hike in duty free alcohol limit set to take effect Jan. 25

Taipei, Jan. 14 (CNA) Travelers entering Taiwan will be allowed to bring in more duty-free alcohol for their personal use starting later this month, the Ministry of Finance (MOF) said Tuesday.

The current duty-free allowance of l liter of alcohol allowed per incoming traveler will be increased to 1.5 liters beginning Jan. 25, the MOF said.

The agency first announced a plan in late December to increase the allowance after taking into account similar rules applied by countries in Asia and the West, expected losses in tax revenues, and the opinions of alcohol importers and local alcohol brands.

According to the MOF, the new plan for duty free alcohol will be formally posted at around 5 p.m. Tuesday, and the public will have seven days to offer their opinions on it.

After the seven days, the MOF will streamline procedures for finalizing the measure so that it can take effect around the Lunar New Year holiday, which begins on Jan. 25, the ministry said.

At present, passengers who exceed the duty-free limit must declare the alcoholic beverages they have with them or risk confiscation and fines at Customs, and that will not change under the new measure.

The MOF said the current alcohol duty free limit has not been reviewed for 20 years, and the limit allowed in Taiwan had become relatively low compared with other countries.

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, but it is 1.5 liters in China and 2 liters in South Korea and Singapore.

In the United States and Australia, the duty-free allowance for alcohol is 1 liter and 2.25 liters, respectively. The United Kingdom allows incoming travelers to bring in a maximum 42 liters of duty-free beer and 18 liters of grape wine.

The MOF said the ministry has reviewed the current duty free limit carefully by asking alcohol importers and producers for opinions either pro or con.

Initially, the MOF had planned to raise the limit to 2 liters, but after assessing all of the factors, it decided on a limit of 1.5 liters.

According to the MOF, the change is expected to cost the country several million Taiwan dollars a year in revenue from import duties, business tax, and alcohol tax.