Cut the keg tax
Beer tax to jump $28.3m in 2022
WHAT THESE TAX INCREASES WILL MEAN TO YOU:
*5% ABV for 330ml bottle, 425ml pint, 50L keg
WHAT YOU CAN DO TO HELP
50% keg tax reduction
= $41.17 saved per 50 litre 5% ABV keg per litre of pure alcohol
- We are asking for the keg beer rate to be reduced by 50 per cent to provide relief for pubs, clubs, and beer drinkers.
- This would be a one-off decrease with the rate then increasing in line with CPI annually following the reduction. The change would not impact the rates for pack beer.
- A 50% reduction in the keg beer tax would mean the rate would drop from $31.089 per litre of pure alcohol to $15.5445 per litre of pure alcohol for full strength draught beer.
Over 160,000 New Zealanders are employed in the accommodation and food service industry, many of these being pubs and restaurants. With venues seeing huge decreases in trade since the COVID-19 outbreak, a 50 per cent keg beer would reduce the tax payable on a pint of beer by around 35 cents.
The next beer excise increase will be on 1st July and is likely to be the biggest hike in over three decades - just as venues start to recover.
Beer sales are critical for pubs and clubs, representing about 70% of all their alcohol sales.