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Winemakers’ Federation warns against tax changes

THE Winemakers’ Federation of Australia (WFA) has cautioned the Federal Government against tax changes that could devastate the industry.

In its formal Pre-Budget Submission, the WFA calls on the Treasurer to retain the Wine Equalisation Tax (WET) as “the most appropriate system for taxing wine.”

“Suggestions that all alcohol should be taxed in the same way ignore the reality that wine is different from other forms of alcohol in the way it is produced, marketed and consumed,” WFA chief executive, Stephen Strachan, said.

“An ad valorem tax is the fairest way to tax wine and the WET was developed and introduced to reflect the realities of the wine industry.”

According to the WFA, Australia had among the highest wine taxes in the world, and under the WET scheme, the sector had contributed a net $707 million in alcohol-specific tax in 2008-09.

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