Wine tax reform: The impact of introducing a volumetric excise tax for wine
In addition to the GST, alcohol sold in Australia is subject to excise tax. Although both beer and spirits are subject to a volumetric excise tax, wine is subject to an additional value added tax known as the Wine Equalisation Tax (WET). The recent Henry tax review recommended substantial changes to Australian alcohol taxation policy. Here, the implications for the wine industry of the Henry tax review recommendations are explored using a computable general equilibrium model. The results show that: (i) replacement of the 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 a uniform alcohol tax equal to the packaged beer excise rate across all alcoholic beverages would have a notable negative impact on the wine industry.
|Date of creation:||06 Jul 2011|
|Contact details of provider:|| Postal: 35 Stirling Highway, Crawley, WA 6009|
Phone: (61) (8) 6488 1757
Fax: (61) (8) 6488 1098
Web page: http://www.are.uwa.edu.au/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pannell, David J., 1997.
"Sensitivity analysis of normative economic models: theoretical framework and practical strategies,"
Blackwell, vol. 16(2), pages 139-152, May.
- Pannell, David J., 1997. "Sensitivity analysis of normative economic models: theoretical framework and practical strategies," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 16(2), May.
- Pannell, David J., 1996. "Sensitivity Analysis of Normative Economic Models: Theoretical Framework and Practical Strategies," 1996 Conference (40th), February 11-16, 1996, Melbourne, Australia 156444, Australian Agricultural and Resource Economics Society.
- Pannell, David J, 1996. "Sensitivity Analysis of Normative Economic Models: Theoretical Framework and Practical Strategies," Discussion Papers 232264, University of Western Australia, School of Agricultural and Resource Economics.
- K.W. Clements & W. Yang & S.W. Zheng, 1997.
"Is utility additive? The case of alcohol,"
Economics Discussion / Working Papers
97-02, The University of Western Australia, Department of Economics.
- Xueyan Zhao, 2010.
"What Do the Bingers Drink? Micro-unit Evidence on Negative Externalities and Drinker Characteristics of Alcohol Consumption by Beverage Types,"
Wine Economics Research Centre Working Papers
2010-07, University of Adelaide, Wine Economics Research Centre.
- Preety Srivastava & Xueyan Zhao, 2010. "What Do the Bingers Drink? Micro-Unit Evidence on Negative Externalities and Drinker Characteristics of Alcohol Consumption by Beverage Types," Economic Papers, The Economic Society of Australia, vol. 29(2), pages 229-250, 06.
- Hanoch, Giora, 1975. "Production and Demand Models with Direct or Indirect Implicit Additivity," Econometrica, Econometric Society, vol. 43(3), pages 395-419, May.
- Kenkel, Donald S, 1996. "New Estimates of the Optimal Tax on Alcohol," Economic Inquiry, Western Economic Association International, vol. 34(2), pages 296-319, April.
When requesting a correction, please mention this item's handle: RePEc:ags:uwauwp:108667. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.