A radical plan to increase taxes on alcohol that was proposed to the Turnbull Government this week would see prices rise by 10 per cent and include previously exempt draught beer.
The proposal from the Foundation for Alcohol Research and Education (FARE) – an organisation that routinely calls for increases in alcohol tax – this year focused largely on the tap beers it believes are under-taxed.
“Beer is beer is beer, and the tax should apply equally to all products irrespective of what form it comes in,” said FARE Chief Executive Michael Thorn.
The proposed $2.9 billion tax hike would be a huge saving measure for the Turnbull Government if considered, with FARE calling for just $27.5 million of the additional revenue to be put back into preventative health care.
Recent research by Deutsche Bank showed Melbourne as the equal eighth most expensive city in the world for a pint of beer, while Sydney came in at 20th.
The Australian Hotels Association warned that any increase in excise would “act as a virtual payroll tax for the Federal Government and would inevitably lead to a drop-in employment and other economic activity”
What do you think? Is alcohol already over-taxed or can you see the economic and health benefits of an increase in the price of alcohol?