The Wine Equalisation Tax (`WET') will also be introduced with the GST as a means of replacing the current WST. This tax will be levied at the wholesale level at the rate of 29% and it will largely facilitate the maintenance of existing taxation levels on these products. There will be some small price increase in both bottled and cask wine.

The WET will apply to grape wine, fruit and vegetable wine, grape wine products such as marsala, vermouth, wine creams and cocktails, cider, perry, mead and sake.

Entities holding WST paid stock will be able to claim a credit for the difference between the WET and WST (ie. 12/41 st of the WST).