Wine Tax Reform: The Impact of Introducing a Volumetric Excise Tax for Wine |
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Authors: | James J Fogarty Guy Jakeman |
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Institution: | 1. Fogarty: School of Agricultural and Resource Economics, The University of Western Australia;2. Jakeman: ACIL Tasman. |
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Abstract: | The recent Henry tax review recommended substantial changes to Australian alcohol taxation policy. Here, the implications for the Australian wine industry of the Henry tax review's recommendations are explored using a computable general equilibrium model. The results show that: (i) replacement of the Wine Equalisation Tax (WET) with a revenue‐neutral volumetric excise tax would have a small negative impact on the wine industry; (ii) removal of the WET rebate would have a substantial negative impact on small wineries; and (iii) applying the packaged beer excise rate across all alcoholic beverages would have a notable negative impact on the wine industry. |
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