Alcopop tax props up chardy setSiobhain Ryan and Matthew Franklin | April 30, 2008
UNIVERSITY students and young revellers will be subsidising the chardonnay set under the Rudd Government's war on alcopops.
Under the proposed new tax regime designed to cut binge drinking, labelled as wowserish by the Opposition, buyers of a four-pack of alcopops would be paying as much tax as a white-wine lover buying a reasonable $20 quaffer at the local bottle shop - about $3.70.
In terms of buzz for their buck, the wine drinker will be getting the better deal.
Their $20 bottle of white wine contains about eight standard drinks - about twice the number contained in a four-pack of pre-mixed Vodka Cruisers.
Chris Evans, professor of taxation at the University of NSW Australian School of Taxation, said the alcopops tax announced over the weekend smacked more of politics than proper tax or social policy. "I would suggest it was actually the opposite of sensible business tax reform because what it's doing is responding on an ad hoc basis to address a social problem," he said.
Despite calls from this month's 2020 Summit for a review of inconsistent taxes, the excises levied on alcohol remained out of step with the alcohol content of the drinks sold. "There's possibly the need to step back and do a general review of them," he said.
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