By Amelia Ball
Australian wine producers could soon be feeling the pinch in the Singapore market following a change to the way alcohol imports are taxed in the city state.
The Singapore Government is now taxing all imported products according to their alcohol content as opposed to the flat rate system that existed prior to February 15.
The Australian Wine and Brandy Corporation (AWBC) confirmed all imported still wines were previously taxed at $S9.50 per litre, and that the Singapore Government is now imposing duties of $S70 per litre of pure alcohol.
What this means for Australian wine producers is yet to be seen, with any price adjustments still rolling out in the burgeoning market.
But media reports have suggested Singapore importers could consequently shift their focus, with lighter foreign wine styles becoming increasingly competitive.
The development in Singapore follows a significant alcohol tax change in the Asian sector, with Hong Kong abolishing its own 40 per cent import duty.