As spirits producers across Australia come to terms with a fresh tax hike that has put spirits excise at over $100 per litre of alcohol, Spirits & Cocktails Australia is calling on the Government to freeze any future increases and review the current tax system and settings.
Chief Executive Greg Holland said spirits manufacturers are in a state of disbelief at the latest tax hike confronting their businesses.
“This cannot be what the policy makers had in mind when they designed the alcohol excise regime in 1983, at which time there were only two spirits manufacturers in Australia. There are now more than 600 businesses subject to this tax,” Holland said.
“When spirits drinkers head down to their local today, they should ask themselves why they are paying the third highest excise rate in the world for their favourite spirit.
“This situation is clearly untenable. We are calling on the Federal Government to freeze future excise increases so that the policy settings this industry can be reviewed.”
Australian Distillers chief executive Paul McLeay said that reaching the $100 tax milestone six years earlier than previously forecast highlights a key point in the development of Australia’s spirits industry.
“We can either get the policy settings right to support this industry that is showing so much promise, or tax it into oblivion,” he said.
“Evidently, the current excise regime is at odds with the government’s stated aim of driving growth in the manufacturing and tourism sectors, and job creation in regional areas, which is where two out of every three Australian distilleries are located.”