AUS: Cidermakers cry foul over spirits industry's tax call - report

By | 4 April 2013

Australias cider lobby have written to MPs over the proposal

Australia's cider lobby have written to MPs over the proposal

Australia's cidermakers and spirits producers have locked horns over alcohol tax ahead of next month's Budget, according to local reports. 

Trade group Cider Australia has hit out at spirits producers, who are proposing a “reform” of the tax system which would bring cider taxation in line with spirits, the Sydney Morning Herald reported this week. The Distilled Spirits Industry Council of Australia is proposing a volumetric tax system based on the alcohol content of all drinks. 

Traditional cider in Australia currently falls under the wine equalisaiton tax (WET) system, separate to spirits.

A Cider Australia spokesperson told the paper the DSICA proposal is "misleading, disingenuous and deceptive".

The cider group has written to MPs complaining about the proposal. "Cider Australia has significant concerns in relation to the push for change to cider taxation, which is being heavily lobbied by the DSICA," the letter reads. 

"This body [the DSICA] is made up almost exclusively of multi-national companies who rely on primary industry in their home countries, but are lobbying the Australian government to impose a killer tax on the Australian cider industry.”

The spirits industry argues traditional ciders are affecting its market because of the price advantage the category has, it was reported.

In the UK last month, the goverment abandoned its duty escalator on beer, but left it in place for wine, spirits and cider.  The Wine & Spirit Trade Association subsequently claimed the move could be illegal.

Expert analysis

Cider Market in Australasia to 2017: Market Guide

"Cider Market in Australasia to 2017: Market Guide" provides in-depth detail on the trends and drivers of the Cider market in Australasia. The quantitative data in the report (historic and forecast consumption values) analyses the dynamics in the Australasian countries, providing marketers with the essential information to understand their own and their competitors’ position in this market and the information to accurately identify where to compete in the future. The report provides data to help companies in the Cider industry better understand the changes in their environment, seize opportunities and formulate crucial business strategies.

Sectors: Beer & cider, Legislation, Spirits

View next/previous articles

Currently reading -

AUS: Cidermakers cry foul over spirits industry's tax call - report

There are currently no comments on this article

Be the first to comment on this article

Related articles

UK: Wine & Spirit Trade Association calls for fairer taxes

The Wine & Spirit Trade Association (WSTA) has launched a new campaign demanding a fairer taxation system in the UK and an end to the duty escalator.

UK: On-trade volumes suffer over summer, but off-trade stays solid - Figures

UK on-trade alcohol volumes fell by 6% over the early part of the summer, but wine and spirits bucked the trend, latest figures have revealed.

UK: EU wine rules shake-up still on UK Government agenda

The UK Government has vowed to press on with its bid to force the European Union (EU) to change its rules on the definition of wine.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page