Parliament moved into extraordinary urgency to pass a new tax law early on Wednesday morning, increasing the excise duty on low strength spirits.
The tax was introduced by Associate Health Minister Jim Anderton, who told the House the increase will discourage young people from drinking because they won't be able to afford so much alcohol.
The measure was passed just before five o'clock Wednesday morning after a debate lasting more than eight hours
The change will affect spirits that contain between 14% and 23% alcohol.
National Party leader Bill English says the Government 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 it was another example of the Government introducing taxes by stealth.
Light spirits can retail at under $10 a litre. The increase will see the tax on light spirits, fortified wines and sherries raised to the same rate as the tax on full strength spirits, adding around $6.65 to the price of a 1.125 litre bottle and about $4.50 to the cost of a 750ml bottle.
The new tax will net the government around $18 million a year.
However the Hospitality Association doesn't believe it will achieve all the government hopes.
Association chief executive Bruce Robertson says higher excise taxes have not stopped young people smoking and he sees no reason for it to work with alcohol.
Robertson also says older people who like these products are being unfairly penalised by the change.
