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Alcohol Excise Duty Proposal
Better New Zealand

Better New Zealand proposes to remove all excise tax on Alcohol.
A GST rate of 30% will be placed on alcohol purchased other than on licensed premises.

Background

Excise Duty on alcohol was first imposed in 1802 to fund the Napoleonic wars. It remained a minor source of government revenue until its discovery in the 2000's by academic theorists and crusading politicians as a means of controlling “bad” behaviors caused by alcohol consumption.

The policy has failed.

Excise Duties cannot solve social problems

Excise duty on alcohol has instead caused considerable harm to society and consumers of alcohol.

    It has increased costs for people on low income lowering their capacity to cover their costs of living.

    It has moved alcohol consumption from licensed premises where there is host responsibility to less salubrious surroundings.

    It has lowered the ability of low income people to accompany their consumption of alcohol with meals.

Benefits

    It will leave more disposable and discretionary income in the hands of the less well off.

    It will encourage the consumption of alcohol on licensed premises where there are entertainment facilities, a social atmosphere food availability and host responsibility.

Better New Zealand believes that there are effective ways of controlling the harm caused by some people in their alcohol consumption.

Our forebears after many approaches decided the best solution was to encourage people to drink on licensed premises.