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August 2000
Taxing Times Down Under
Abolition of Australia's Sales Tax May Spell Higher Wine Prices
by Peter Tromans
The abolition of Sales Tax in Australia is set to prompt a rise in prices for wine as one sales tax is replaced by two--a general purchase tax plus a new special wine tax. The new tax system will cause the wine industry major problems as the former overall Wholesale Sales Tax (WST) has been supplanted by a new Wine Equalization Tax (WET) coupled with a General Sales Tax (GST). Despite consumers believing the change could mean lower prices industry analysts warn that this will actually result in ...
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