Alcohol tax would hit wine and craft beer

A call for an alcohol tax hike, promising nearly $3 billion to the budget, would hit craft brewers, bulk wine producers and cider makers the hardest.

Craf beers. Source: AAP

Cheap wine quaffers, craft beer connoisseurs and traditional cider sippers would be hit hardest by any increase to the alcohol tax in the May budget, industry research suggests.

Increasing taxation by 10 per cent could cut drinking by 9.4 per cent and reap nearly $3 billion annually, according to a pre-budget submission to government by the Foundation for Alcohol Research and Education.

Industry analysis released by research firm IBISWorld suggests the move would drive prices of cheaper bulk wine, craft beers and traditional cider up the most.

The hike would have a significant impact on the $10 billion alcohol industry but, unless it was applied equally, could lead people to simply shift to cheaper drinks, IBISWorld senior analyst Andrew Ledovskikh said.