Comments on: Go with the cash flow http://wineconversation.com/wine-conversation/go-with-the-cash-flow/ reaching out from the wine bubble Wed, 28 Jul 2010 04:06:49 +0100 http://wordpress.org/?v=2.9.2 hourly 1 By: Wine of the Month Club http://wineconversation.com/wine-conversation/go-with-the-cash-flow/comment-page-1/#comment-1426 Wine of the Month Club Thu, 14 Jan 2010 22:02:36 +0000 http://wineconversation.com/?p=950#comment-1426 Unfortunately, government will always be looking to increase its revenue stream. I understand the need for taxes and am willing to pay my fair share.<br><br>What I am unhappy with is unreasonable tariffs and important taxes that make the wine marketplace become distorted. I want equal access to the wines of the world. I want quality/price ratios to be my key purchasing driver not to be skewed by unfair taxes or duties. Unfortunately, government will always be looking to increase its revenue stream. I understand the need for taxes and am willing to pay my fair share.

What I am unhappy with is unreasonable tariffs and important taxes that make the wine marketplace become distorted. I want equal access to the wines of the world. I want quality/price ratios to be my key purchasing driver not to be skewed by unfair taxes or duties.

]]> By: Anthony http://wineconversation.com/wine-conversation/go-with-the-cash-flow/comment-page-1/#comment-1357 Anthony Tue, 15 Dec 2009 06:05:22 +0000 http://wineconversation.com/?p=950#comment-1357 No joke, smaller liquor stores are trying to squeeze more money out of people, when it is just as easy to go to a supercenter and get it for a fraction of the price. No joke, smaller liquor stores are trying to squeeze more money out of people, when it is just as easy to go to a supercenter and get it for a fraction of the price.

]]> By: Anthony http://wineconversation.com/wine-conversation/go-with-the-cash-flow/comment-page-1/#comment-1342 Anthony Tue, 15 Dec 2009 01:05:22 +0000 http://wineconversation.com/?p=950#comment-1342 No joke, smaller liquor stores are trying to squeeze more money out of people, when it is just as easy to go to a supercenter and get it for a fraction of the price. No joke, smaller liquor stores are trying to squeeze more money out of people, when it is just as easy to go to a supercenter and get it for a fraction of the price.

]]> By: KAHUNA http://wineconversation.com/wine-conversation/go-with-the-cash-flow/comment-page-1/#comment-1340 KAHUNA Sat, 12 Dec 2009 07:25:42 +0000 http://wineconversation.com/?p=950#comment-1340 nice article- NJ raised the tax on alcohol also this year- It really is getting silly and in my mind driving competition down- Some stores are using this as a way to raise prices and what they do not realize is that bigger retailers are not-So now there are three local stores I do not even go in anymore as they were generally higher priced before but now it is not even an option. I stick to the bigger selection and better prices from the mecca WL 30 minutes from my house nice article- NJ raised the tax on alcohol also this year- It really is getting silly and in my mind driving competition down- Some stores are using this as a way to raise prices and what they do not realize is that bigger retailers are not-So now there are three local stores I do not even go in anymore as they were generally higher priced before but now it is not even an option. I stick to the bigger selection and better prices from the mecca WL 30 minutes from my house

]]> By: Borj http://wineconversation.com/wine-conversation/go-with-the-cash-flow/comment-page-1/#comment-1339 Borj Tue, 08 Dec 2009 17:59:19 +0000 http://wineconversation.com/?p=950#comment-1339 Duty?! What's the character limit? <br>As a wine importer I have many (mainly bad) thoughts on Duty. It is effectively a stealth tax - the government knows it can charge high amounts per bottle of duty on alcohol since the price of alcohol is not very elastic, in other words raise the price of drink and people will still buy. What's frustrating is that this form of tax is not reinvested into the industry that pays it, the importers, consumers etc. It's one thing paying high taxes which one can see coming back into the community be it roads, schools or hospitals etc. Paying £1.61 + VAT on still wines, 0.75 l, is astronomical and I for one don't see where this money goes, who it helps and why we pay it?? The worst thing is that there is absolutely nothing we can do about it as regardless of the party in power this income stream is one they all need. Don't forget that as well as the actual charges duty employees quiet a few people too! Bonded warehouses, HMRC customs staff, Duty deferment accounts, SIVA etc.<br>One of the side effect of unreasonable duty, in some cases the duty charge is higher than the cost of wine is the creation of a black market, read: smuggling. Have you ever gone into your local "Food & Wine" and seen a £2 a bottle of Italian red? If not have a look at a picture I took on Munster Road this week (attached) - that's right, Central London, in full sight with a big promo attached! Lets do the math, £2/bottle (OK...?), take away VAT @ 15 % that's £1.73, now take away the duty @ £1.61 and you have a total of 13 pence left, in which you should assume the importers' margin, the shop's margin, transport from Italy, storage and domestic distribution, not forgetting overheads etc...maybe, but far more likely the bottle has been smuggled into the UK and sold for cash, to everyones detriment since, no duty or VAT has been collected on smuggled goods.<br>Cheers Darling! Duty?! What's the character limit?
As a wine importer I have many (mainly bad) thoughts on Duty. It is effectively a stealth tax – the government knows it can charge high amounts per bottle of duty on alcohol since the price of alcohol is not very elastic, in other words raise the price of drink and people will still buy. What's frustrating is that this form of tax is not reinvested into the industry that pays it, the importers, consumers etc. It's one thing paying high taxes which one can see coming back into the community be it roads, schools or hospitals etc. Paying £1.61 + VAT on still wines, 0.75 l, is astronomical and I for one don't see where this money goes, who it helps and why we pay it?? The worst thing is that there is absolutely nothing we can do about it as regardless of the party in power this income stream is one they all need. Don't forget that as well as the actual charges duty employees quiet a few people too! Bonded warehouses, HMRC customs staff, Duty deferment accounts, SIVA etc.
One of the side effect of unreasonable duty, in some cases the duty charge is higher than the cost of wine is the creation of a black market, read: smuggling. Have you ever gone into your local “Food & Wine” and seen a £2 a bottle of Italian red? If not have a look at a picture I took on Munster Road this week (attached) – that's right, Central London, in full sight with a big promo attached! Lets do the math, £2/bottle (OK…?), take away VAT @ 15 % that's £1.73, now take away the duty @ £1.61 and you have a total of 13 pence left, in which you should assume the importers' margin, the shop's margin, transport from Italy, storage and domestic distribution, not forgetting overheads etc…maybe, but far more likely the bottle has been smuggled into the UK and sold for cash, to everyones detriment since, no duty or VAT has been collected on smuggled goods.
Cheers Darling!

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