Tax Hike Bites Consumers -- HANZ

Media Release

Tax hike bites consumers

"A round of drinks at the local is going up," says Hospitality Association Chief Executive Bruce Robertson. The price of all alcoholic beverages goes up from 1 July driven by increases in excise tax. Alcohol manufacturers and distributors have already announced they will be passing on additional costs for fuel, transport, labour rates and packaging as well as the excise tax and the retail sector has no choice but to follow.

Mr Robertson said that it was unfortunate that a Government imposed excise tax increase was fuelling the very inflation the Reserve Bank was trying to stop. While the tax increase is an annual one indexed to inflation, the Government has discretion not to impose it. With all the other cost increases being faced by New Zealanders it is a shame that the Government couldn't have been more consumer friendly and not applied the increase this year.

"Prices for all alcoholic beverages are expected to increase throughout July as existing stocks are consumed," says Mr Robertson.

ENDS

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