Singapore’s alcohol industry has the potential to be highly profitable. You’re unsure about a few things before you start: How does the local market fare? What are the alcohol-related levies and taxes?
It contains some of the fundamentals and knowledge you should acquire to open a wine shop singapore.
Overview of Singapore’s wine market
Realistically speaking, Singapore’s wine market is highly competitive. There are 117 wine wholesalers and 327 wine retailers in this city-state of 5.5 million people. They are all vying for customers from the increasing number of restaurants, bars, hotels, and other establishments where people frequently gather over glasses of wine.
Additionally, Singapore has high alcohol taxes, and it might be challenging to enter the market and obtain a permit. Despite the difficulties, this is a profitable market to pursue. There are many people with disposable income in this group, and they are more prepared to spend it on wine. According to one estimate, Singapore’s wine consumption would rise by 21% between 2013 and 2017.
What are the guests bringing, and who arrived early for the party?
Australia, France, and Chile are currently Singapore’s top three wine importers by volume, supplying most of the country’s imported wine.
Singaporeans currently seem to like red wine above all others. Red wine accounts for 64% of wine consumption in Singapore, and between 2008 and 2012, this market expanded by 10.5%. In general, wine consumers tend to be male and between the ages of 25 and 50, as with any business still in its infancy; these statistics are subject to rapid change.
Taxes And Duties
Even though they are hefty, Singapore’s tariffs and taxes are relatively simple to understand once you figure out the method. The website for Singapore’s customs provides a brief overview of excise taxes.
The excise tax on all types of wine, including port, sparkling, red, and white, is SG$88 per liter of alcohol, so the calculation is as follows:
The government furthermore levies a 7% GST on all imported items in addition to excise duty. This tax of $88 per liter of alcohol is also applied to most imported spirits and liquors, while an excise duty of $60 per liter is levied on beers and ciders.
Permissions and Permits
To import alcohol, you must pay excise taxes, charges, and a permit. For those just starting, the Singaporean government has a detailed, well-explained guide to importing.