08 September, 2021

New Zealand: Government urged to refund excise on beer that spoiled during lockdowns

New Zealand’s Taxpayers’ Union is backing calls for the Government to refund excise tax on keg beer that has spoiled due to COVID-19 lockdowns, Scoop.co.nz reported on September 8.

Union spokesman Louis Houlbrooke says, “Many kegs opened prior to lockdown will have deteriorated to such an extent that thousands of litres will, tragically, need to be poured down the drain. The Government shouldn’t be exacerbating this sad loss with a nasty excise tax.”

“Excise tax is a consumption tax, so it seems perverse and unfair to levy it on product that cannot be consumed.”

“The loss of revenue from lockdown alone is a major blow for brewers and pubs. Charging excise tax on destroyed product is an egregious double whammy. The Government should allow beer excise to be remitted for the beer that is returned and destroyed.”

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