Taipei: The Legislative Yuan has approved amendments to the Customs Import Tariff, making malt and hops duty-free to decrease costs and enhance the competitiveness of Taiwan's domestic beer industry.

According to Focus Taiwan, the revised legislation will eliminate the existing 7.5 percent tariff on both roasted and unroasted malt. Additionally, tariffs on hops-whether ground, unground, or pelletized, as well as hop extracts-will be reduced to zero from the previous rates of 15 percent and 7.5 percent, respectively.

The Legislature's Finance Committee reviewed the amendments in December 2025, following a proposal by Kuomintang Legislator Lin Szu-ming and several lawmakers from various parties. The sponsors aimed to support local brewers by reducing tariffs on essential imported raw materials used in beer production. They noted that domestic beer brands have faced pressure from foreign competitors who benefit from lower prices and tariff advantages.

A report from the Ministry of Finance indicated that the tariff cuts are expected to result in a loss of NT$74.35 million (US$2.35 million) in customs revenue. However, the measures could enhance the competitiveness of domestically produced beer and stimulate demand, potentially 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.

The Ministry of Agriculture acknowledged that barley and hops used in brewing are primarily imported due to a lack of domestic cultivation at an economic scale. The ministry expressed respect for the views of relevant authorities on tariff cuts for beer-related raw materials.

The bill, which did not require cross-party negotiations, passed its initial review during committee deliberations in December. During these discussions, some Democratic Progressive Party lawmakers urged authorities to enhance enforcement against illicit transshipment and origin laundering of Chinese products. The amendments passed the Legislature without objection in a final reading on Tuesday.