Media Release
2 June 2006

Consumers hit by tax hike

New Zealanders face yet another round of price increases on their favourite alcoholic beverage, so says Hospitality Association Chief Executive Bruce Robertson. The June increase in Excise Tax will trigger manufacturers and retailers all moving their prices to cover not only the rise in tax but also increased costs of fuel, transport, labour, rates and packaging. Mr Robertson said it was ironic that all the talk is about how over-taxed New Zealanders are and despite that the Government went ahead with this tax increase.

While the tax increase is an annual one indexed to inflation, the Government has the discretion not to impose it. With all the other cost increases being faced by New Zealanders it is a pity the Government couldn’t have been generous and not applied this increase. Prices for all alcoholic beverages are expected to increase throughout June as existing stocks are consumed, says Mr Robertson.

For further comment or interview, contact Bruce Robertson, Chief Executive,
Hospitality Association of NZ. Phone 04 385 1369 or 027 440 0650.

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