To “compensate” for the introduction of the wine tax, the government would be rolling out an awareness campaign on the importance of local wines, Agriculture Parliamentary Secretary Roderick Galdes said.
His comments follow winemakers’ statements labelling the wine tax as “excessive”, as it threatened to undermine all the local wine sector had achieved over the last 10 years.
“I understand their position but, on the other hand, one must bear in mind that we are talking about quality wines,” Mr Galdes told Times of Malta.
“I don’t think 15c on a bottle of wine that costs €15 will leave a huge impact. The effect of this excise duty on quality wines is minimal.
“However, I do realise their concern is mainly focused on market entry wines due to competition with imported ones.” The excise duty, he said, was a way through which the government could monitor which wines were entering the country.
Marsovin CEO Jeremy Cassar commented that the whole viability of producing wine was compromised as, once taxed, the price of a bottle had the potential of tripling by the time it got to the consumer.
“I don’t think there should be a cascading effect,” Mr Galdes said. The government was very careful and, to compensate, there would be a campaign on local wines, he pointed out.
“The importance here is to highlight farmers’ work and the process of winemaking in our country. “The quality mark which we’ve been launching recently ensures wine and agricultural produce in general are given the necessary importance.”
On Friday, Marsovin, Meridiana, Camilleri Wines and Vitimalta expressed concern at the “uncompetitive impact of the tax” of 20c per litre (15c per bottle) and at the lack of discussion prior to its introduction.
Mr Cassar highlighted the fact that wine was an agricultural product not an industrial one. “I don’t understand the concept of imposing a levy on an agricultural product that is not taxed in any country in Europe, except in France,” he had told this newspaper. “Supporting local wine is supporting agriculture. It improves the tourism product and lends tremendous value to our environment. There are large expanses of land dedicated to vineyards. Wine should not be treated like spirits or beer.”