1 Nov 2010

Wine makers say excise increase will hurt

4:28 pm on 1 November 2010

The wine industry says the financial pain it has been going through this year will continue unless the Government changes plans for an increase in excise.

New Zealand Wine Growers says the Government's intention to raise the tax from July will cost wineries another $1 a case, which they will have to bear themselves because they can't pass it on.

Chief executive Philip Gregan says there are 600 to 700 wineries in New Zealand, but only two big players in the retail sector, which are the supermarkets.

Mr Gregan says that gives power to the retailers which are very reluctant to accept price increases so it becomes impossible to pass on the annual tax increases.

He says the Government should tax the consumer directly at retail, rather than producer level.