New wine tax structure

New wine tax structure

Singapore has changed its tax treatment on alcohol in its recent rationalization of liquor duties. With regard to wines, they are now taxed based on their alcoholic content rather than on a flat rate fo $9.50 per litre.

With the new tax system, wines of different alcohol contents will attract different amounts of tax. They are now taxed based on a flat rate of $70 per litre of alcohol. A 750 ml bottle of wine with 10% alcohol will be slapped an excise tax of $5.25. How is this calculated? This bottle would contain 0.075 (10% of 0,75) litre of alcohol. At $70 per litre of alcohol, the tax will be 0.075 times of $70, which is $5.25. To better understand how this new tax treatment will affect the tax on wine

In general, let’s look at some examples below:
A bottle of wine with 13.5% alcohol will attract roughly the same tax as before.
A bottle of wine with 15% alcohol will be taxed at $7.875 (+ 75 cents)
A bottle of wine with 11% alcohol will be taxed at $5.775 (- $1.35)
A bottle of wine with 7% alcohol will be taxed at $3.675 (- $3.45)