Are Australia's wine consumers overtaxed?

Abstract

With the Senate enquiry on reforming Australia's tax system in full swing, the wine industry is debating whether the current ad valorem wine tax should continue or be replaced by a volumetric tax. Premium wine producers prefer the latter, because it would lower the tax on their wine as a percentage of the bottle price. Non-premium wine producers, on the other hand, fear moving to a volumetric tax would force their customers to pay more. Show more