February 20, 2003

French Vineyards in Tax Row

French vineyards have been asked to stop paying taxes to their Government by four of their own industry bodies. The appeal follows a crisis meeting in Paris and shows the level of discontent in France's wine industry over the Government's use of funds.

An industry statement said the problem was with the Government's agricultural agency which collects an annual estimated 100 million Euros from wine producers but allows 85% of the money to 'go into the general state tax purse where it is wasted'.

Said Maurice Carroll of wine and travel website, winedrive.com: "They are fed up with contributing to a vast cash reserve of which just a very small proportion is used to help their industry. The governing bodies are asking for it to be paid into a separate bank account which the Government can't touch."

The situation has been made worse as the tax, based on annual wine sales and charged on top of business and employment taxes, is set to rise under new rules. Added Maurice Carroll: "It means the Champagne region will see a 244% rise while smaller producers in Bordeaux face a 168% increase. Vineyard owners say the tax as punitive.

"It is little wonder the vineyards are up in arms when they see their domestic and export sales steadily decline through lack of proper support or marketing".

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