Alcohol is subject to an excise tax. To learn more about excise taxes, click here.
The amount of excise tax varies by beverage type and alcohol volume in the beverage. Click here for the current excise rates in New Zealand.
The money collected by the Government from alcohol excise taxes goes into the wider pool of Government funds. Taxes are not tagged to any initiatives to reduce alcohol harm.
Alcohol is also subject to a special levy. This goes to the Health Promotion Agency to support their alcohol programme of work.
Excise tax increases are not always passed on to the consumer - sometimes the industry absorbs some of the increased costs.
Increases in excise taxes could generate significant revenue for the Government as well as result in significant cost savings from reduced alcohol-related harm.
In 2014, the Ministry of Justice examined the benefits of increases in excise taxes. The report noted that the matter would not be looked at again until 2019.