The government is working on a presentation of evidence to show that imported distilled spirits will never be affected by the recent tax cut on rice wine in Taiwan because the latter is used almost exclusively as a cooking ingredient and is seldom drunk, Ministry of Economic Affairs officials said Saturday. If necessary, the government will send representatives to the United States and the European Union to explain why it has slashed the tax on locally produced rice wine, the officials said. On Aug. 19, the Legislative Yuan approved a revision to the Tobacco and Alcohol Tax Act allowing a cut in the tax on rice wine to NT$5.4 (US$0.16) per 0.6-liter bottle from NT$29.5. The move raised U.S. and European concerns over a possible market impact due to the tax cut and the Office of the United States Trade Representative advised Taiwan Aug. 19 to respect World Trade Organization (WTO) regulations as a member of the economic bloc. The European Union also said the cut violates the WTO principle of equal treatment for imported and locally produced goods. According to government sources, it is anticipated that U.S. and European governments will not lodge litigation over the issue at the WTO in the near future because they have to collect opinions from the justice departments and liquor traders. 'So far, they have just expressed concern, ' the officials said. Rice wine, as a distillate, is taxed like whisky or brandy, but is used almost only for cooking. The U.S. and European Union are under the impression that cutting the tax on the kitchen condiment will somehow impact the sale of imported Scotch and other spirits sold for drinking. 