“Labour is continuing to hammer small businesses and everyday Kiwis, with record inflation leading to the biggest increase in alcohol excise tax in over 30 years,” says ACT’s Associate Finance spokesperson Damien Smith.
“Since the alcohol excise tax is adjusted against CPI, our skyrocketing inflation means it is going up by 6.9 per cent on July 1. This means the Government is raking in an extra $85.2 million dollars in alcohol excise in 2022.
“It’s just extra cost after extra cost with this Government. This increase will hammer hospitality businesses who are already on their last legs thanks to the Government’s lock em down and lock em out approach to COVID, and will further increase cost of living pressures on Kiwis who just want to enjoy a cold beer or glass of wine at the end of the working week.
“This comes after the Food Price Index showed that compared with a year ago Kiwis are paying an extra 6.8 per cent across all food categories, with fruit and vegetables alone costing 10 per cent more. Nothing is safe from price hikes under Labour.
“If Labour inflicts any more costs on businesses and hard working Kiwis they’re going to end up driving people to drink. This is another unnecessary expense at a time when people can least afford it.”