03 February, 2006

Australia: Beer taxes to increase prices

Beer drinkers would pay more at the pub with an increase in Federal Government excise on beer coming into effect today. The increase is governed by the Consumer Price Index , according to media reports .

The Australian Hotels Association (AHA) South Australian general manager Ian Horne says beer drinkers are likely to see rises of around 10 cents for a mid-sized glass of beer." That's as a result of the Federal Government's six-monthly automatic excise increase," he said. “That's a federal tax that's increased by the CPI on the first of February and the first of August”.

Mr Horne says hotel owners will not be forced to lift prices but many will, because of increased wholesale costs and retail margins.

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