“No Cheer For Drinkers Liquor Prices Up 3.1%”
If you leave buying your favourite bottle of spirits until tomorrow (1 June) it will cost you at least 3.1% more.
That is because the Government’s latest inflation-adjusted tax increase is scheduled to kick in.
This means the new excise tax component on a 1125ml bottle amounts to a staggering $16.10, with an additional amount of GST at 12.5% to be added on top of that.
“People should look at their dockets and I’m sure they won’t be impressed with the Government’s latest effort to lighten their pockets,” said Thomas Chin, Chief Executive of the Distilled Spirits Association.
“The Government needs to come to understand that raising excise taxes on ordinary spirit drinkers is unlikely to increase its revenue base, especially in a generally declining market.
“As we all know, higher alcohol taxes will not make one ounce of difference to the abusive drinking behaviours of certain individuals. But penalised in this blanket approach will be the vast majority of drinkers who drink responsibly and in moderation.
“In fact, all it does is unfairly hurt and outrage another group of ordinary New Zealanders – pricing their favourite brands beyond reach and providing a shot in the arm for the black market, the unregulated home-made market and government coffers.
“Tax increases will also add to our already inflationary situation,” he said.
According to Chin, the Minister of Finance should give consumers a break by deferring tomorrow’s increase or reducing the overall tax burden. ENDS
For further information, please contact: Thomas Chin Chief Executive Officer Distilled Spirits Association Phone (09) 300-5930 or Mobile 021-679-989