AUSTRALIA rss feed

Opposition may block alcopop tax in Senate

Thursday, 15 May, 2008
'Alco-pops' have been blamed for contributing to teenage binge drinking. (Getty Images)
The federal opposition has hinted it will use its Senate majority to block a tax hike on so-called alcopop drinks.

The Rudd government has increased the excise on ready-to-drink (RTD) alcoholic beverages by 70 per cent to bring them into line with unmixed spirits, closing a loophole created when the GST was introduced in 2000.

Opposition Leader Brendan Nelson says the coalition is looking very carefully at tax increases in this week's budget.

The government had falsely suggested the RTD tax hike would reduce consumption, he said.

"The tax of ready-to-drink mixes has been an act of deception by the government, falsely presenting as something that it isn't," Dr Nelson told reporters in Canberra.

"What Mr Rudd has been seeking to do is to deliberately mislead the Australian people."

Dr Nelson says he will have something further to say about the issue when he delivers a budget reply speech to Parliament tonight.
Source: AAP