Government simplifying wine excise tax rules

Economic Development Minister David Carter and Customs Minister Maurice Williamson today announced changes to wine excise tax regulations which will benefit more than half the country's wineries.

From 1 July, thresholds for the payment of excise tax will lift tenfold, allowing smaller wineries to shift from monthly payments to six-monthly or yearly payments.

Currently, only wineries with a tax liability of less than $10,000 are exempted from paying monthly. The new thresholds are:

* $100,000 or more, excise to be paid monthly

* $50,000-$100,000, excise to be paid six-monthly

* $50,000 or less, excise to be paid annually.

"Our wine industry is a $1.1 billion dollar export earner for New Zealand and a vital contributor to our regional economy. It should not be hobbled by unnecessary red tape and regulation," says Mr Carter.

"This is the first change to the thresholds in 14 years and is a common sense solution to reducing the regulatory burden on our small wine producers.

"This is not about reducing their tax obligations but about aligning excise payment with revenue flows," says Mr Carter.

Mr Williamson says the wine excise changes will put money in wine producers' pockets for longer.

"These changes will help many smaller wineries cut their administration costs and balance cash flows and in a number of cases will enable wineries to stay in business. More than 350 businesses around the country are likely to benefit and this will have a positive flow-on effect in wine producing areas.

"These changes will help an already $1 billion industry flourish and grow," says Mr Williamson.

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