And what did he come up with? For a start there’s the revelation that a bottle of Penfolds Bin 389 that would set you back around $60 here only costs the equivalent of $36 in the U.K. and the difference in price is, of course, directly attributable to the differing tax regimes in the two countries.
In the light of the earlier statement that I want to be able to keep drinking the best quality wines I can afford, it’s fairly obvious where I stand in regard to this little issue. I’ve never been able to afford Bin 389.
Actually, I could, if I wanted to, but the $60 price bracket is one where I don’t look very often, if I look at all. But at $36 for a wine with a Halliday rating of 96, that’s a whole different kettle of fish.
Now, we know that the likely changes to the way wine is taxed are likely to produce a substantial jump in the price of cask and cleanskin wines, and that as a result any suggestion in favour of a volumetric tax will bring howls of rage from the companies that work that end of the market.
A side panel in Allen’s article lists the arguments for and against the volumetric tax. My comments are in italics.
The arguments ’FOR’ are pretty straightforward.
Reduction of harm resulting from abuse of cheap bulk wine.
People likely to abuse cheap bulk wine will probably have limited budgets, and will tend to drink as much as they can afford.
A price rise, along with changes to the welfare payment system would probably reduce consumption.
Encouraging consumption at the premium end of the market by making it more affordable.
A big tick of approval from my end.
Volumetric tax already applies to other forms of alcohol.
If this is one aspect of introducing a simpler, more straightforward tax system, bring it on!
The arguments ‘AGAINST’ are equally straightforward.
Increasing the cost of cheap bulk wine will have a devastating impact on inland irrigation areas.
Are current practices in the irrigation belt sustainable? Economically? Environmentally? There’s going to need to be a substantial shakeout to current practices, particularly with regard to water allocations, so it’s not as if changes to the tax on wine is the only threat those communities are facing.
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