NZ Docs: Tackle Cheap Booze with Tax Hike

New research showing that some alcohol in New Zealand (NZ) costs less than bottled water spurred a leading medical organization to come out against the NZ government’s decision not to raises taxes on alcohol.

Researchers analyzing data from the Consumers Price Index and the New Zealand Income Survey found that alcohol has become more affordable in NZ in the past ten years since increases in hourly earnings have surpassed the rise in alcohol prices.

The study appeared in the Oct. 15 issue of the New Zealand Medical Journal.

In a related news release, the New Zealand Medical Association (NZMA) called on the NZ government to reconsider its recent decision not raise the excise tax on alcohol — a decision that ran counter to the evidence provided by the NZ Law Commission (pdf), the government-funded agency charged with making informed policy recommendations.

“One of the consequences of alcohol being promoted and sold at pocket-money prices is that we risk losing sight of its status as a legal drug, capable of causing serious harm to others,” said Law Commission President Geoffrey Palmer.

“International evidence shows that cheap alcohol leads to increased consumption,” said Peter Foley, chair of the NZMA.

“It is alarming that the affordability of alcohol has actually improved in recent years, making it even more difficult to address excess alcohol consumption,” said Foley. “While we have welcomed some of the Government's policies to address our alcohol problem, such as fines for those providing alcohol to under-18s without a guardian's consent, the issue of price cannot be ignored.”