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Budget 2014: Coffee shops likely to charge at least $1 more per beer bottle

Published on Feb 23, 2014 10:14 AM
The 25 per cent increase on alcohol tax is the heftiest of the hikes on "sin taxes", with tobacco levies up by 10 per cent and betting duty rates up from 25 per cent to 30 per cent. -- ST PHOTO: SEAH KWANG PENG

It is going to cost more to have a beer in Singapore, with heartland coffee shops set to charge at least a dollar more per bottle after the hike in liquor tax announced during last Friday's Budget.

Coffee shop owners cannot afford to absorb any rise in cost price, said the chairmen of two associations representing over 700 shops.

A bottle of beer that costs around $6 could go up to over $7, said Mr Thomas Foo, chairman of Kheng Keow Coffee Merchants Restaurant and Bar-Owners Association.

Mr Hong Poh Hin, chairman of Foochow Coffee Restaurant and Bar Merchants Association, said: "We haven't spoken to our suppliers yet, but we will definitely pass any increase on to consumers."

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