Winemakers get more time to pay tax
Threshold for monthly payments raised.
Hot Topic
EARNINGS
Alterations to the payment procedures for wine excise announced today by Minister of Economic Development David Carter and Minister of Customs Maurice Williamson will be warmly welcomed by affected wineries says industry organisation New Zealand Winegrowers.
Currently, only wineries with a tax liability of less than $10,000 are exempted from paying monthly. The new thresholds are:
- · $100,000 or more, excise to be paid monthly
- · $50,000-$100,000, excise to be paid six-monthly
- · $50,000 or less, excise to be paid annually
The changes, which come into effect July 1, mean around half of New Zealand’s 700 wineries will have a longer time to make excise payments to government as returns will now be able to made either six monthly or yearly, instead of monthly.
“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. The decision represents sound business and regulatory commonsense,” said Philip Gregan, New Zealand Winegrowers’ Chief Executive Officer.
The wine industry generates around $1 billion in export receipts a year.
NBR staff
Thu, 02 Jun 2011
Thu, 02 Jun 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Winemakers get more time to pay tax
14986