Spectator on facebook

Spectator on facebook

FOCUS SHORT

MPs nix excise tax on fruit wines

FRUIT WINES and mead are again exempt from excise tax. Slovak MPs voted to lift the duty in early February, only a month after it became effective. Their amendment reintroduced zero-rate excise tax on still, fermented drinks and mead, the SITA newswire reported.

FRUIT WINES and mead are again exempt from excise tax. Slovak MPs voted to lift the duty in early February, only a month after it became effective. Their amendment reintroduced zero-rate excise tax on still, fermented drinks and mead, the SITA newswire reported.

Slovak fruit-wine producers had criticised the original legislation as discriminatory, anti-liberal and anti-European, and said it would bankrupt them.

“This legislative nonsense will bring not one additional cent into the state budget,” said Štefan Trnka, from the Vinárske Závody Krupina wine factory, as quoted by SITA, in reference to the original legislation. “On the contrary, it will harm the whole production chain from fruit producers via wine producers up to retail sales.”

He stated that the legislation was bankrupting his company and that it had already been forced to close down some units.

The original legislation increased the price of fruit wines, whose average wholesale price used to be about €0.58 per litre, by the excise tax of €1.35 per litre. Producers said that this made fruit wines unsalable and warned that it would mean the gradual winding down of fruit-wine production in Slovakia. They also expressed bewilderment at why conventional grape wine remained exempt from excise tax.

Slovaks normally drink about 25 million litres of fruit wine per year, which accounts for about one-fifth of total production of all still wines.

Topic: Finances and Advisory


Top stories

Strike at Volkswagen could prompt others Photo

The recent strike at the biggest carmaker in Slovakia may serve as a lesson for some, trade unionists in other companies agree.

Fico complains about unfair football rules Photo

But he has been silent about other scandals connected with football players.

l-r: Adam Zreľák, Robert Fico, Robert Kaliňák and Pavel Hapal

Animals will no longer be “things”

New rules to prevent the torture of animals to come into effect in early 2018.

Illustrative stock photo

CSR reports should not hide failures

What standards should a good CSR report uphold?

Companies will report on the supported projects.