A podcast interview with Dylan Firth of the Brewers Association discusses how declining alcohol consumption in New Zealand—driven by lifestyle changes and the cost of living—impacts government excise tax revenue, calling for policy reforms such as a keg tax to better support the酒
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Well, I think the the problem here is that Treasury's kind of not only in this budget but in previous budgets since COVID is is really over forecast what the excise revenue is going to be for the last five years. Um they kind of projected there'll be a small dip after COVID and then it would go back to normal if slightly increases over time, and that really just hasn't happened. Um, you know, we we expect the next kind of between five years out, you know, the overestimate's about 180 million dollars, and that's quite substantial. And what that means is that, you know, when Treasury overforecasts, you know, government setting policy based on numbers that don't exist, you know, we're trying to get back into surplus here. Um, and we're seeing, you know, the costs go up every year because alcohol is excis indexed uh based on CPI. Um, and what's happening is those prices are uh pressuring kind of hospitality businesses, for example, who we're seeing the largest levels of liquidations ever. So, what do you want to do?
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a targeted solution to support bars without driving closures
Dylan Firth: Brewers' Association Executive Director on what less Kiwis drinking means for the Government tax takeSpotted something wrong on this page? Report a correction.
