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Tax on non-sparkling wine would be fatal, say wine-makers

The tax on non-sparkling wine, which is to bring EUR 20mn (USD 28.15mn) in public revenue, would be fatal for the Slovak vineyards and wine-makers, according to the Union of the Grape and Wine Producers (ZVHV).

The tax proposals were made as part of the public budget principles for 2012-2014, presented by the Slovak Finance Minister Ivan Miklos on 25 March 2011. ZVHV's Executive Director Jaroslava Kanuchova-Patkova said the Slovak producers would be hit twice - first by the tax itself and second by the fall of official production, which would decrease the calculation base for the wine-making subsidies. Kanuchova-Patkova said that the tax would not help to lower the public budget deficit the way the Finance Ministry believes, as it would significantly increase the prices of wine and therefore also lead to a significant fall in its sales. ZVHV expects that under the proposals, the average price rise per bottle would be at least EUR 0,25 (USD 0,35), with the associated fall in sales of over 20%. According to the union, up to 80% of the currently functioning wine-makers may be driven out of business - those whose annual production is less than 500 hectolitres, for whom the increase in cost would make their activity nonviable.

Source: http://www.talkingalcohol.com/index.asp?pageid=78&newsid=3490

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