Changes to wine excise tax regulations will benefit cash flows, says an industry body.
Economic Development Minister David Carter and Customs Minister Maurice Williamson said the changes to the wine excise tax regulations would benefit more than half the country's roughly 700 wineries.
Thresholds for the payment of excise tax on domestic sales would be lifted ten-fold from the start of next month, allowing smaller wineries to shift from monthly payments to six-monthly or yearly. At present, only wineries with a tax liability of less than $10,000 are exempted from paying monthly.
Under the adjusted regulations, excise will be paid annually by wineries with a tax liability of $50,000 or less, six monthly at $50,000-$100,000 and monthly at $100,000 or more.
Carter said the change was not about reducing tax obligations but aligning excise payment with revenue flows. NZ Winegrowers' chief executive Philip Gregan said the simple regulatory change would have a significant cash-flow benefit for affected wineries as it would better align excise payment time-lines with their income flows.
"The decision represents sound business and regulatory commonsense," Gregan said.
The changes represented a step forward in a long-term agenda of easing the compliance costs associated with excise payments