14 May 2002

Imposition of Excise on Higher of Labelled or Actual Alcoholic Strength

The Minister for Revenue and Assistant Treasurer, Senator Coonan, today announced that through the 2002-03 Budget the Government will amend the Excise Act 1901 to impose excise duty on the higher of the actual alcoholic strength or the labelled strength of beverages subject to excise. This measure has effect from 7.30pm EST 14 May 2002, and legislation will be introduced shortly to implement it.

Under current excise legislation excise is imposed on the actual alcohol strength, not the labelled strength, of alcoholic beverages. This measure brings the calculation of excise duty into line with the method used to calculate customs duty on imported alcoholic beverages.

Treasury Contact:
Andrew Starr 6263 4432