Increasing the excise tax on alcohol would likely result in fewer people dying or being injured and generate savings for society, according to a recently published study. The study found that raising the tax by just 15 cents per standard drink would reduce sales of alcohol by 4.3 per cent in the first year and lead to a reduction in alcohol-related injuries and deaths from road transport crashes.
The researchers from the University of Otago used economic modelling to calculate the effect of a one-off rise in alcohol taxes on sales of beer, cider, wine, spirits and ready-to-drink products.
The New Zealand Government imposes different levels of excise tax on alcohol, related to the type of product, and the percentage of alcohol it contains by volume. Dr Anja Mizdrak, another study author says the overall rate of alcohol tax is low compared to other countries and increasing it by just 15 cents per standard drink would bring New Zealand into line with the UK and Australia.
The research is published after the Tax Working Group in its interim report released recently found the system of excise tax on alcohol to be unnecessarily complex and recommended it be reviewed. The working group urged the government to seek input from public health experts to assess the health effects of alcohol consumption and the impact of alcohol abuse.
