Thursday, 10 April 2008


I hear the government has said that it cost the phemonenal amount of 56 billion per year to service the sins of drinking, smoking and drugs. While this is laudable and right I just wonder how much excise the goverment recieves from the first 2 sins per year. This would be an interesting equation just to bring the whole debate into perspective. ................
Government revenue
There are four areas related to alcohol consumption from which State, Territory and
Commonwealth governments earn revenue: excise on domestic goods, customs duty on
imported products, sales tax (to June 2000) or goods and services tax (from July 2000) and
business franchise fees. In August 1997, the High Court ruled that the States and Territories
could no longer collect State business franchise fees. Between August 1997 and June 2000 the
Commonwealth Government collected additional tax and refunded this to the States and
Territories. Information on sales tax and goods and services tax is not available at the
commodity level.
In the context of the above, the net government revenue associated with alcohol increased
from $2.4 billion in 1995–96 to $3.1 billion in 2000–01 (Table 3.5). The amount of revenue
raised from excise remained relatively stable over the period 1995–96 to 2001–02, given that
from 2000–01, the increase in excise on beer was offset by the decrease in State franchise fees
following the August 1997 High Court decision. The revenue raised from customs duty on
imported products has increased from $577 million in 1995–96 to $1,111 million in 2001–02. -

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