New tax aimed at young drinkers

Published: 11:22PM Tuesday May 06, 2003

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The Government says it has introduced legislation to raise the tax on light spirits, fortified wines and sherries to discourage youth drinking.

But the Opposition says the measure, effective straight away, is just a tax grab.

All beverages containing 14-23% alcohol by volume will now be taxed at the same rate as full strength spirits. That means the tax on a 1.125 litre bottle will increase by about $6.65.

National Leader Bill English says the Government has introduced the bill under extraordinary urgency to minimise the amount of media coverage because it does not want its budget tainted by the issue.

Act leader Richard Prebble says its another example of the Government introducing taxes by stealth.

However, Associate Customs Minister Jim Anderton told the House that the cheap, light spirits favoured by young people make up most of the alcohol in the new tax category.

Anderton says survey data shows young men and women are drinking heavily and the Government is determined to take steps to reverse it.

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