Hops, malt tariff exemptions clear legislative floor

Taipei, Jan. 13 (CNA) The Legislative Yuan on Tuesday passed draft amendments to the Customs Import Tariff that will make malt and hops duty-free to lower costs and boost the competitiveness of Taiwan's domestic beer industry.

Under the revisions, the existing 7.5 percent tariff on both roasted and unroasted malt will be eliminated. Tariffs on hops -- whether ground, unground or pelletized, as well as hop extracts -- will also be cut to zero from the current rates of 15 percent and 7.5 percent, respectively.

The Legislature's Finance Committee jointly reviewed the amendments in December 2025 after being proposed by Kuomintang Legislator Lin Szu-ming (林思銘) and several lawmakers from across party lines.

The sponsors said the changes were intended to support local brewers by reducing tariffs on key imported raw materials used in beer production.

Lin and other sponsors said domestic beer brands have long faced pressure from foreign competitors benefiting from lower prices and tariff advantages.

The amendments, they said, were designed to provide tariff relief on malt and hops to help brewers survive and develop over the long term.

According to a written report submitted by the Ministry of Finance, the tariff cuts are expected to result in a loss of NT$74.35 million (US$2.35 million) in customs revenue.

However, the ministry said the measures could enhance the competitiveness of domestically produced beer and boost demand, generating an estimated NT$169.74 million in additional tax revenue. After accounting for the tariff revenue loss, the net fiscal benefit is projected at NT$95.39 million, it added.

The Ministry of Agriculture said that barley and hops used in brewing are primarily imported as domestic cultivation lacks economic scale, adding that it respected the views of relevant authorities regarding tariff cuts on beer-related raw materials.

The bill, which did not require cross-party negotiations, passed initial review during committee deliberations in December, during which some ruling Democratic Progressive Party lawmakers urged authorities to strengthen enforcement against illicit transshipment and origin laundering involving Chinese products.

The amendments cleared the Legislature without objection in a final reading on Tuesday.