Australia’s winemakers have given the Government legal advice on how to end what they describe as a “perverse” and “absurd” subsidy for the New Zealand’s industry.
Australia’s winemakers have given the Government legal advice on how to end what they describe as a “perverse” and “absurd” subsidy for the New Zealand’s industry.
The wine equalisation tax (WET) was introduced to make up the difference when the GST replaced higher wholesale sales taxes.
In a move initially designed to support smaller winemakers and grape growers, the Government allowed them to claim a rebate of up to $500,000.
Under the terms of Australia’s free-trade deal with New Zealand, trans-Tasman producers are also eligible to claim the benefit.
Subsidising their competition has local winemakers seeing red.
“We are extending rebate provisions, on preferential terms, for those imports to continue,” Paul Evans, chief executive of the Winemaker’s Federation of Australia (WFA) said.
“It is a perverse and absurd situation.
Read;
http://www.abc.net.au/news/2015-05-10/australian-winemakers-see-red-over-absurd-and-perverse-subsidy/6457906
