Wineries face largest excise increase in 20 years

For immediate release 1 July 2011

Wineries face largest excise increase in 20 years

Wineries are facing the largest excise increase in 20 years as the government today lifted the wine excise rate by more than 12 cents per litre to over $2.70 per litre. This will increase the excise take on New Zealand wine to around $180 million in the next year.

‘The timing of this increase could hardly be worse. Economic times are tough, we have already had last October’s GST increase, and now wineries face the largest excise increase in over 20 years. The chances of wineries being able to recover the increase from the market seem very slim as a result’ said New Zealand Winegrowers’ CEO Philip Gregan.

Mr Gregan said the current excise policy was failing to meet the objectives set for it. ‘There is a commonly held view that wine excise is a tax on consumers. This is a misconception.’

‘Excise is paid by producers and in the current environment increases are not passed onto consumers. This has been the case for some time and will be the case again this year. The end result is more pain for producers.’

ENDS

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