April 25, 2024
Retail & Consumer
Gov’t eases regulations on microbreweries to help them expand
[THE INVESTOR] Microbreweries will be allowed to supply products to retail stores, even as regulations are being eased to help them expand their operations, the government announced on Feb. 27.
At present, microbreweries can sell their products only be at the brewery and establishments they operate.
In addition, the government plans to relax the Liquor Tax Act to allow a wider range of ingredients including rye, oat, and starch from sweet potato, buckwheat, chestnut and others allowable under the Food Sanitation Act. At present, beer ingredients are limited to malt, wheat, rice, barley, potato and sorghum, corn, starch, sugar or caramel.
The government also plans to modify the regulations that determine whether a producer is classified as a microbrewery.
At present, beer producers are classified according to the size of the vat used. To be classified as a microbrewer and receive tax benefits, the vat used at the brewery cannot exceed 75,000 liters.
Microbrewers are afforded 60 percent subsidy in taxes on up to 100,000 liters of products a year, and 40 percent cut on up to 300,000 liters of beer produced.
According to the government, the limit on vat capacity had been restricting microbreweries from expanding.
By Choi He-suk (cheesuk@heraldcorp.com)
At present, microbreweries can sell their products only be at the brewery and establishments they operate.
In addition, the government plans to relax the Liquor Tax Act to allow a wider range of ingredients including rye, oat, and starch from sweet potato, buckwheat, chestnut and others allowable under the Food Sanitation Act. At present, beer ingredients are limited to malt, wheat, rice, barley, potato and sorghum, corn, starch, sugar or caramel.
The government also plans to modify the regulations that determine whether a producer is classified as a microbrewery.
At present, beer producers are classified according to the size of the vat used. To be classified as a microbrewer and receive tax benefits, the vat used at the brewery cannot exceed 75,000 liters.
Microbrewers are afforded 60 percent subsidy in taxes on up to 100,000 liters of products a year, and 40 percent cut on up to 300,000 liters of beer produced.
According to the government, the limit on vat capacity had been restricting microbreweries from expanding.
By Choi He-suk (cheesuk@heraldcorp.com)
