MPI fees threaten wine exports

The MPI has said the increased levies are necessary to recover the costs of its regulatory programmes, yet the wine industry already contributes $200 million annually in excise tax.

"They are now seeking an additional $2.9 million from the industry to meet MPI regulatory costs," says King, who is chair of the Central Otago Pinot Noir Charitable Trust.

King says the MPI operates a user-pays regime with regard all agricultural and horticultural sectors. However, unlike the other primary sectors, the wine industry also pays a product-specific excise tax, which has increased massively for the wine industry.

"Margins for the industry are very tight and further costs will reduce profitability further. The industry needs the government to support growth," says King.

"Under its Business Growth Agenda, the government says it is committed to encouraging economic growth in the regions. Penalising winemakers with an additional cost burden flies in the face of that policy."