Fed: Costello taken legal advice over beer esxcise measure

AAP General News (Australia)
04-28-2000
Fed: Costello taken legal advice over beer esxcise measure

Treasurer PETER COSTELLO has taken legal advice on the Australian Democrats move to
block a higher beer excise after the GST.

Mr COSTELLO says he's not convinced the government needs the Democrats' support in
the Senate for the higher tax.

Beer currently attracts an excise and a 37 per cent wholesale sales tax.

When the old tax is replaced by the 10 per cent GST, the government will set a higher
excise to make up the difference.

The Democrats have accused the government of misleading drinkers by promising the GST
and associated tax changes would add only 1.9 per cent to the price of beer.

But the government says that promise applies only to packaged beer, and draught beer
is set to rise by seven to nine per cent as poured beer would attract the service component
of the GST.

AAP RTV daw/mfh/wz/smf

KEYWORD: TAX BEER COSTELLO (CANBERRA)

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