Gin and vodka drinkers are subsidising people who consume beer and cheap wine because of higher taxes on spirits, according to craft distillers.
"As it has been said to me, the breathalyser or doctor doesn't discriminate about how alcohol came into your system - why would the tax collector?" he said.The excise duty on spirits is currently $85.87 per litre of pure alcohol, while full-strength beer is taxed at the rate of $50.70 per litre, according to the. Wine is taxed at 29 per cent of the wholesale price under the wine equalisation tax.
"In some cases more than 50 per cent of total revenue is paid straight to the Tax Office every month," he said. "This is a huge drain on cash flow. By allowing us to claim back some of that cost, the excise refund scheme is a welcome relief.""This higher tax is passed on to the consumer, so they pay more for spirits than they would for beer or wine," he said.
Mr Whittaker noted the excise levied on alcohol was increased every six months in line with inflation.
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