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Tax Hike Bad News For Drinkers

31 May 2000

News Release

Tax Hike Bad News For Drinkers

An expected 1.8 per cent hike in excise taxes tomorrow is bad news for drinkers said Thomas Chin, Chief Executive Officer of the Distilled Spirits Association.

"Spirit drinkers will be gobsmacked to learn that over $16 of the retail price on a typical bottle of spirits is excise tax. Add in the Alcohol Advisory Council levy and GST and you’re up to $18 tax on your favourite drink", said Mr Chin.

Mr Chin said the Association was disappointed that the Minister of Finance had not used the strong economic growth forecasts and withheld the tax increase on drinkers.

"The tax increase does little to help the spirits industry, which has been illogically prohibited from supermarket and grocery distribution channels and which in recent years has seen production cutbacks and job losses.”

Taken together the tax increases are inflationary, unfair and economically damaging to every local business and consumer.

The Association urges the Government to reverse its spirits excise tax increase in the upcoming Budget.

ENDS

For further information, please contact:

Thomas Chin
Chief Executive Officer
Distilled Spirits Association

Ph: (09) 300-5930
Fx: (09) 300-5931



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