Turnbull urged to lift tax on alcohol by 10%

THE Turnbull government could reap $2.9 billion and cut drinking nationwide if it increased alcohol taxes by 10%, a new report says.

Commissioned by the Foundation for Alcohol Research and Education, the report argues for wine and cider to be taxed the same as beer. It said if all alcohol products were taxed according to their volume of alcohol, consumption would drop almost 10%.

Currently, wine is taxed on price rather than volume and although it accounts for 40% of the alcohol consumed, it provides only 15% of the tax collected.

The government gets about $6 billion a year in alcohol taxes.

Public Health Association of Australia chief Michael Moore strongly backed the report.

"A change in the tax regime increasing alcohol excise by 10% will reduce availability, have an impact on chronic disease and reduce alcohol-fuelled violence," he said.


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