The New Zealand government has implemented the largest tax increase on alcohol in 30 years, an increase of 6.65% following a 6.92 % hike in 2022.
Alcohol has consistently been a target for tax increases as governments seek additional funding, but the additional tax will be especially hard on the industry as alcohol beverage manufacturers face increased costs due to inflation and supply chain shortages.
Brewers Association of New Zealand executive director Dylan Firth said: “The beer excise increase could not come at a worse time for brewers and consumers. With Kiwis facing a cost-of-living crisis, more tax is the last thing anyone needs,” according to an article in The Drinks Business.
Although alcohol beverage manufacturers and importers were able to obtain a tax reduction in the US in 2018 through the Tax Cuts and Jobs Act, individual states may impose tax increases.
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