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Wine Tax Reform: The Impact of Introducing a Volumetric Excise Tax for Wine
Author(s) -
Fogarty James J.,
Jakeman Guy
Publication year - 2011
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.2011.00653.x
Subject(s) - excise , wine , tax reform , ad valorem tax , value added tax , indirect tax , tax revenue , economics , tax policy , tax rate , sales tax , business , revenue , public economics , monetary economics , food science , accounting , macroeconomics , chemistry
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.