2 June 2006
Media Release
Available for immediate use
Consumers hit by tax hike
New Zealanders face yet another round of price increases on their favourite alcoholic beverage, so says Hospitality
Association Chief Executive Bruce Robertson. The June increase in Excise Tax will trigger manufacturers and retailers
all moving their prices to cover not only the rise in tax but also increased costs of fuel, transport, labour, rates and
packaging. Mr Robertson said it was ironic that all the talk is about how over-taxed New Zealanders are and despite that
the Government went ahead with this tax increase.
While the tax increase is an annual one indexed to inflation, the Government has the discretion not to impose it. With
all the other cost increases being faced by New Zealanders it is a pity the Government couldn’t have been generous and
not applied this increase. Prices for all alcoholic beverages are expected to increase throughout June as existing
stocks are consumed, says Mr Robertson.
ENDS