New alcohol tax threatens business

Published: 8:53PM Friday May 09, 2003

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Winegrowers say the government's decision to set a higher excise tax could put some smaller producers of fortified wines out of business.

Legislation passed this week to increase the tax on light spirits - aimed at discouraging young people from drinking too much - also increases the price of fortified wines such as ports and sherries.

Shawn Brown, of Muirlea Rise Wines in Martinborough, says with half his company's production being fortified wine, it will place undue pressure on their finances.

He says the price increase cannot be passed onto consumers or they will price themselves out of the market.

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