Thursday,
July 31, 2003
LATEST CPI INCREASE RENEWS SPIRITS INDUSTRY CALL FOR ALCOHOL TAX REFORM
The
Distilled Spirits Council of Australia (DSICA) has renewed its call
for an inquiry into the Australian alcohol taxation system after yet
another price increase for spirit drinkers takes effect from the 1st
of August.
The tax rate on a litre of alcohol in spirit form will rise
another 75 cents to $58.72, following the bi-annual CPI excise increase.
The rise further demonstrates
the widening gap on taxing spirit drinkers as opposed to wine and
beer drinkers. Spirits and beer are subject to six-monthly indexation
whilst wine has a fixed ad-valorum tax.
From 1 August, spirit drinkers
will pay 74 cents tax per standard drink, compared to 29 cents for
premium wine, and 24 cents per standard 285 ml glass of draught beer.
Cask wine will only attract a tax rate of 8 cents for each standard
drink.
DSICA Executive Director, Gordon
Broderick, said the vast tax differences meant spirits drinkers were
subsidising beer and wine drinkers, and it is time for an overhaul
of the Australian alcohol taxation system.
‘Alcohol is alcohol, regardless
of whether it has been brewed, fermented or distilled.
‘A nip of spirits, served
straight or mixed, is exactly the same strength and has exactly the
same effects as a 285 ml glass of full strength beer or a glass of
wine,’ said Mr Broderick.
‘Spirits represent about
12 per cent of the alcohol market, yet pays 27 per cent of non GST
revenue, where as wine makes up 30 per cent of the market but pays
only 16 per cent of non GST revenue. Beer has 49 per cent of the alcohol
market, but pays only 45 per cent of alcohol tax.’
Mr Broderick said alcohol laws
do not distinguish between alcohol types, so why do the taxation laws
distinguish between alcohol products?
‘Breathalysers do not distinguish,
drink driving laws do not distinguish, and the courts do not distinguish,
so why does taxation distinguish between them?’
Mr Broderick said Democrat Senator,
Andrew Murray, gave notice of a motion for a review last year, but
that motion has not yet been debated.
‘While supporting small
incremental increases, DSICA would continue to lobby the Federal Government
on alcohol taxation reform to achieve equity for all alcohol products,’
concluded Mr Broderick.
