Brewers correct to ‘call time’ on overflowing alcohol taxes

The Taxpayers’ Union is backing The Brewers Association’s call for urgent reform of alcohol excise taxes, following reports that tax now accounts for around half the wholesale price of a keg of beer.

Taxpayers' Union spokesperson Tory Relf said:

“New Zealanders currently have the lowest levels of drinking ever recorded, yet the booze taxes they have to pay keep climbing every year.”

“Half the cost of a keg is tax. Those costs are directly reflected in the price of a pint, and with the cost-of-living crisis hitting Kiwis hard it’s no wonder people can’t afford a Friday catch-up after work anymore.”

“By counting alcohol spending itself as a social cost, the studies Ministers rely on create a circular logic where every tax increase automatically inflates the very harm used to justify tax hikes. By that logic, that means no tax bill could ever be enough.”

“These automatic excise hikes are becoming self-defeating, with an expected $180 million shortfall in alcohol excise revenue as consumption falls. Ministers are about to learn what happens when you push beyond the peak of the Laffer Curve.”

“Pub-goers have more than paid their fair share. It’s time for Ministers to show some Dutch courage and put an end to automatic alcohol excise increases.”