Excise hike leaves sour taste

Published: 10:47AM Wednesday May 07, 2003

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A week out from the Budget the government has increased the tax on light spirits, fortified wines and sherries.

Sitting under extraordinary urgency Parliament debated the tax increase for eight hours before passing it into law just before 5am.

Acting Customs Minister Jim Anderton says the increase in excise duties is designed to discourage young people from heavy drinking.

The Opposition is dismissing it as a tax grab that does little to address teen drinking problems.

Bruce Robertson, chief executive of the Hospitality Association, says the affected drinks are often enjoyed by older people because they are less alcoholic and are cheaper, so this group will be hit.

He thinks the new taxes will not stop young people drinking too much and better education on alcohol use is preferable.

The laws have also been criticised by Rebecca Williams, director of Alcohol Healthwatch.

Source: RNZ

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