Media release from ALAC
For immediate release

ALAC supports keeping alcohol tax

The Alcohol Advisory Council supports the Government’s decision not to remove excise taxes from alcohol.

ALAC’s Chief Executive Dr Mike MacAvoy says a reduction or removal of the excise on alcohol would have led to an increase in alcohol related harm, particularly among young people.

“The price to the community of such a move would be paid by young people who will simply buy more if alcohol is cheaper. New Zealand communities are already trying to cope with increasing numbers of drunken and out of control teenagers. Reducing excise tax would only have made it worse.”

Dr MacAvoy says some people appear to think that the alcohol tax is only a revenue gaining exercise. “In fact, the tax has an important role to play in keeping the lid on consumption and therefore harm.”

He says: “Pricing policy is recognised internationally as one of the most effective tools in reducing alcohol-related harm within the drinking population through reducing consumption.”
In other countries where the tax has been removed or lessened there has been a rise in problems associated with misuse of alcohol, Dr MacAvoy says.

ENDS

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