From Franz Aregger
, at 10. June 2011 07:36
just-drinks.com editorial team – New Zealand Winegrowers has welcomed changes to the country’s duty tax law that should help to relieve financial pressure on New Zealand’s wineries.
Recent amendments to excise tax legislation mean that around half of New Zealand’s 700 wineries will be able to pay half-yearly or annually, rather than monthly, the trade body said today (2 June).
An oversupply of wine and fragile economic conditions in key export markets have put many small-to-medium New Zealand wineries and grape growers in a precarious financial position.
“This simple regulatory change will have a significant cash-flow benefit for affected wineries as it will better align excise payment timelines with their income flows,” said New Zealand Winegrowers’ CEO, Philip Gregan.
“These changes represent a significant step forward in our long-term agenda of easing the compliance costs associated with payment of excise by all wineries in New Zealand.”
According to the new rules, which will take effect on 1 July, wineries with a tax liability of up to NZD50,000 (US$40,730) will pay excise tax annually. Those with a liability of between NAD50,000 and NZD100,000 will pay every six months. The remaining wineries will continue to pay monthly.
In January, the producer of the Oyster Bay wine brand, Delegat’s, said that New Zealand’s wine glut could last for another two years.
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