(SMH) - BIG brand wine companies have called for reform of the tax system, contradicting the federal government's reasoning for its refusal to consider a change in wine tax. The government has rejected appeals from health groups for tax reform to curb the sale of very cheap wine, citing the grape glut and industry restructuring. But the current wine tax system is fuelling the glut, say two companies whose labels include Jacob's Creek and Penfolds. In submissions to next month's tax summit, Premium Wine Brands and Treasury Wine Estates call for the abolition of the Wine Equalisation Tax. They say it has distorted the market. They call for a modified version of volumetric taxation - the alternative system recommended by the government's Henry tax review and by health groups to discourage problem drinking of wines that can cost less than bottled water.