Sales tax on N.Z. whisky reduced

Press, 4 December 1979, Page 12

Sales tax on N.Z. whisky reduced

'PA Wellington. Sales tax on New Zealand produced whisky has been cut 8.6 c a litre but there is no guarantee that it will mean lower prices. The rate of excise duty on local whisky was set at a rate somewhat lower than the customs rate on import-

ed whisky when the sole New Zealand manufacturer,, Wilson’s Distillers of Dunedin, began production a few years ago. The margin between the! local and imported rate was intended as protection for the local product. But the margin has not been changed since then, in spite

of substantial inflation. i In a move to restore part of Wilson’s margin, the duty: on local whisky has now been cut from $3,786 to $3.70 a litre. A Customs Department spokesman said it had been decided to cut the local duty rather than raise the import duty, because Wilson’s had

; only 11 per cent of the market. The general manager of IWilson’s (Mr W. A. Coutts) jsaid he was unable to comment on whether the reducted duty would lead to lower ■ prices. “It is the first I have (known about it. It will take jsome time to look at,” he [said.