[16 November/ Business Day: NZ Famer]

New Zealand Deer Farmers Association Chairman, Chris Orange said the proposed removal of the South Korean special excise tax on deer velvet will increase the price paid to New Zealand deer farmers. The current excise tax is set at seven percent, however when additional taxes are added the effective rate is 10.1 percent. Deer Industry New Zealand Asian Market Manager, Rhys Griffiths said the tax will be eliminated in two stages. The first cut, which removed 30 percent of the tax, took effect in August. The second cut, which will take the tax to zero, will be dependent on final approval but is estimated to take effect in January 2016. Mr Griffiths said that in addition to the tax cut, the current 20 percent dried-velvet import tariff is to be reduced by 1.33 percent per year as agreed under the New Zealand-South Korea free trade agreement.