Winegrowers: excise tax stupid

Published: 11:58AM Friday May 09, 2003

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The Winegrowers organisation is warning that the new excise tax on alcohol will put some smaller wine producers out of business.

And it is accusing the government of breaching its promise to consult with the industry on any tax changes affecting it.

Legislation passed under urgency this week to increase the tax on light spirits, is designed to discourage young people from drinking too much.

But the Winegrowers chief executive, Philip Gregan, says it's a stupid move, because it will also significantly increase the price of fortified wines, such as ports and sherries.

He says this will threaten the livelihoods of small specialist producers.

Gregan says the Winegrowers will ask the government to amend the new excise taxes.

Source: RNZ

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