China - The Ministry of Finance has estimated that a reduced tax rate for rice wine, expected to take effect as early as September, could cost the nation NT$1.47 billion (US$45.7 million) a year.On Thursday, the Cabinet approved a draft amendment to the Tobacco and Liquor Tax Act stipulating that red-label rice wine would be treated as cooking wine rather than distilled liquor.If the bill passes its third legislative reading scheduled for Aug. 16, the tax rate for rice wine will be reduced to NT$5.4 per bottle, down from NT$29.25 per bottle, leading to a yearly tax loss of about NT$2.08 billion, the ministry said. However, the new tax rate will cause prices to drop to NT$25 per 600ml bottle from NT$58 and boost sales to an estimated 210 million bottles per year, increasing tax revenue to NT$610 million per year.