How Much Are Wine Taxes in Asia? A Country-by-Country Breakdown

But across the border in Malaysia, wine faces a very different fate. With over 60% of its population being Muslim, Malaysia imposes some of the world’s steepest taxes on alcohol. Depending on the alcohol content, wine taxes range from 150% to 250% of the wine’s value, with excise taxes as high as 34% per liter for sparkling wines. The cost of enjoying a glass of wine in Malaysia is probably among the highest in the world, but the country is also home to two of the leading wine importers in the region, as highlighted in our Asia’s Top 50 Wine Importers.

In neighboring Singapore, the story continues with similarly high barriers to entry. Though there are no customs duties on wine, the excise tax rate is a staggering SGD 88 per liter of alcohol, along with a 9% Goods and Services Tax (GST). There is no customs duty on wines.

Meanwhile, in India—the world’s most populous country—the wine industry is slowly growing, buoyed by a rapidly expanding middle class. India’s middle class, which made up 31% of the population in 2023, is expected to grow to 60% by 2047, making the country a significant potential market for wine. But the path to success is not straightforward. India’s tax structure for alcohol is famously complex, with each state imposing its own rates in addition to the federal 150% import tariff on wines. For example, Karnataka has the highest alcohol tax rate at 83% of the maximum retail price, while Delhi, the capital, has a rate of 62%. Goa and Haryana, the two states most tolerant of alcohol, have alcohol tax rates of 49% and 47%, respectively.

However, the landscape is shifting for those with free trade agreements. The European Free Trade Association (EFTA) allows for a tariff reduction to 100% in 2024 for Iceland, Liechtenstein, Norway, and Switzerland, and it is expected to drop to 50% over the next 10 years for wines priced between US$ 5 and less than US$ 15.

For Australia, the top wine exporter in India, under the Australia-India ECTA, tariffs on wines priced above US$ 15 have dropped to 75%, and are expected to reach 25% by 2032. For wines priced between US$ 5 to US$ 15, tariffs decreased to 100% in 2022 and will come down to 50% by 2032.

Back in Southeast Asia, while Thailand is easing its wine policies, Vietnam and the Philippines are moving in the opposite direction. Vietnam is proposing higher taxes on alcohol, potentially raising excise taxes on wine to 50% by 2026 and further to 70% by 2030. However, there are also immense opportuties for producers. The country has FTAs with major wine exporters, including the EU, Australia, and New Zealand. For the EU, the FTA aims to reduce 50% import duty to zero by 2027. Tariffs on Australian wines have been cut to 20% in 2022 and will be eliminated by 2028, along with tariffs on New Zealand wines.

The Philippines, another emerging wine market, has similarly proposed annual increases to its excise taxes, starting with a P63.12 per liter tax in 2024, with a 6% annual rise from 2025. Additionally, wine is subject to a 12% VAT. For wines with an alcohol strength below 15% vol, the tariff is 7%, which is exempt for Australia and New Zealand due to the FTA.

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