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Friday Drinks Provide No Relief To Kiwis

“Labour’s assault on your back pocket continues tomorrow, as the tax on alcohol will undergo its largest increase in 30 years,” says ACT's Associate Finance spokersperson Damien Smith.

“Since the alcohol excise tax is adjusted against CPI, our skyrocketing inflation means it is going up by 6.9 per cent on July 1. This means the Government is raking in an extra $85.2 million dollars in alcohol excise in 2022.

“After overseeing the highest annual food price increase in more than a decade, this is going to further increase cost of living pressures on Kiwis who just want to enjoy a cold beer or glass of wine at the end of the working week.

“The Government argues that excise is an important tool for raising revenue for alcohol-related harm. ACT doesn’t see how that can justify them taking an extra $85.2 million a year in taxation from an industry already struggling after being savaged by COVID.

“Labour is essentially punishing the hospitality industry for their own economic mismanagement. If they didn’t let inflation get so out of control then this wouldn’t be occurring. Many hospitality businesses are already on their last legs thanks to the Government’s lock em down and lock em out approach to COVID.

“Now is not the time to add extra costs to businesses and households, Labour should hold off in this tax increase.”

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