Call for higher alcohol tax

Published: 12:14PM Thursday December 19, 2002

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The Alcohol Advisory council wants the government to increase the tax on cheap spirits to help tackle excessive drinking by teenagers.

The Beer Wine and Spirits Council agrees with the proposal, saying it will reduce the harm caused by drinking.

The Alcohol Advisory council says tax on alcoholic drinks could be targeted to steer young people away from cheap, high-alcohol drinks.

Currently drinks with more than 23% alcohol are taxed at $38 per litre of alcohol. But if a beverage falls below 23% the excise rate is almost halved to $21.

ALAC chief executive Mike MacAvoy is worried about what he calls "pocket money" drinks, such as 1125 millilitre bottles of spirits with 23% alcohol selling for under $9.

The chief executive of the Beer Wine and Spirits Council Nicki Stewart says she supports higher taxes for what the industry calls light spirits.

ALAC suggested changes would also see tax on light beer and other low alcohol drinks abolished. The government is considering the proposals.

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