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NZ legal threat over new wine tax rebate
27 Aug 2004
New Zealand may make a legal challenge to the tax rebate granted to Australian wine makers in this year's Federal Budget. The NZ Trade Negotiations Minister said the move breaches the Closer Economic Relations agreement between Australia and NZ, and possibly also World Trade Organisation rules.
The Australian Budget introduced a $290,000 rebate for winemakers, aimed at offsetting the Wine Equalisation Tax. But NZ says this amounts to a $300 million subsidy, which effectively leaves NZ wines up to 25 per cent more expensive. Under CER rules the two countries' products must be treated the same.
A spokesman for Australia's Trade Minister denied the rebate is a trade measure but said NZ's legal concerns are being examined.
The Advertiser, 27/8/04.
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