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Thursday, February 7, 2008

Press Release - Alcohol tax increases threaten significant price rises for consumers whilst not addressing problem-drinking

The Wine and Spirit Trade Association
4 February 2008

While anti-alcohol lobbyists have argued that a tax increase on alcohol is the magic bullet to address problem-drinking, new economic research shows this is not the case. The Wine and Spirit Trade Association (WSTA) warned today that any potential tax increase on wine and spirits threatens to significantly increase the prices consumers will pay while doing nothing to reduce problem-drinking. Highlighted in its budget submission to the Treasury, the WSTA warned that not only would increases in tax punish the majority of responsible drinkers, but such increases would actually reduce revenue for the Treasury and threaten over 50,000 jobs.

Commenting on the release of the report, Jeremy Beadles, Chief Executive of the WSTA said: “Raising the price of alcohol by raising taxes will unfairly punish the majority of responsible drinkers for the misdeeds of a small minority. Our research shows that any such increases will do little to address problem-drinking while hurting the economy and the Treasury. It simply does not make any sense.”
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Read Full Press Release

Read Full Copy of the WSTA Budget submission 2008 (PDF)
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