5 Jul 2010

Wine industry bracing for rise in GST

1:34 pm on 5 July 2010

The wine industry is starting to brace itself for a scheduled rise in GST later this year, which it says could put some wineries out of business.

The Goods and Services Tax will rise from 12.5% to 15% on 1 October.

It comes on top of a rise in excise duties for domestic wine of 4 cents per bottle this month.

Winegrowers New Zealand says wineries fear retailers will refuse to stock their wine that if they put prices up.

Chief executive Philip Gregan says it's becoming increasingly to absorb extra costs because most are already suffering financially from the tough trading conditions.

They are rise concerned that the rise in GST will push the level of excise duty even higher.