Brewers get frothy: want a break on beer taxes

 

There is nothing more Australian than enjoying a cold beer.

But the price of a beer is constantly increasing and brewers are asking for a break.

With the beer tax set to increase yet again on Monday, February 3, the Brewers Association of Australia has made a submission for Treasurer Jim Chalmers' budget consultation process calling for urgent action to address the high rates of tax.

Brewers Association of Australia CEO, John Preston said: “On behalf of brewers and beer drinkers across Australia we are asking for urgent action to address the high rates of beer tax.

"We already have one of the highest beer tax rates in the world – there is no need for it to keep going up twice a year.

“Australians are doing the right thing and drinking responsibly. All these tax hikes are doing is making it increasingly unaffordable for Australians to head out to their local for a beer.

“Last year the newly elected Labour Government in the United Kingdom used its first Budget to continue the reductions in beer tax that were started under the previous Conservative government.

"We believe the Treasurer should follow the example of his British counterpart and give much needed relief to beer drinkers and our hospitality sector."

Image: Scop.io

Mexico hits cruise ships with new taxes

Add Mexico to the list of countries that is fighting back against the intrusive and costly wave of cruise ship visits.

The Florida-Caribbean Cruise Association (FCCA) has been spooked after the Mexican government passed a new tax on cruise passengers.

Cruise passengers will face an additional US $42 per person in taxes on top of the current average of US $20 in other taxes and fees the FCCA says is required to visit Mexican ports, news portal Travel Mole reports.

The association says this effectively prices Mexican ports out of the cruise market - which may well be the idea given the increasing cost of catering for cruise ships and the damage they cause the environment.

The law was passed without consultation or any input from the cruise industry, the FCCA says, adding the new tax could disrupt the travel plans of over 10 million passengers expected to visit Mexico in 2025.

“We appreciate President [Claudia] Sheinbaum’s assurance that the change will happen slowly and that she’s instructed federal officials to work with our industry, but we haven’t heard from anyone yet,” FCCA CEO Michele Paige said.

The FCCA says member lines are "eager to collaborate with the government to gain clarity on the details of this implementation and work together to chart a constructive path forward".

“Mexico has long been a cornerstone of the cruise market, that has delivered significant economic benefits to both the industry and local communities,” said Paige.

“However, the unilateral decision to eliminate the in-transit tax exemption without engaging industry stakeholders undermines our partnership.”

The association says cruise ship calls generate over $1 billion in direct spending annually and support more than 20,000 jobs across various sectors.

The FCCA wants Mexican officials to engage in immediate dialogue to address industry concerns.

“Joint efforts between the government and the cruise industry are essential to creating sustainable growth that benefits all parties,” Paige added.

“We are hopeful we can work together to find solutions that preserve Mexico’s vital role in the cruise market.”

Image: Lauren Hudon, Scop.io 

Glass half empty: beer sales slump in the heartland

The Netherlands is home to some of the highest-profile beer brands on the planet - among them Heineken, Grolsch and Amstel.

But the Dutch are losing their taste for beer, recent sales figures indicate.

Dutch beer sales have dipped 5.1% at home, the Nederlandse Brouwers organisation reported. The figures for non-alcoholic beers were worse: down 9.4%.  

The Dutch brewers association says the decline in beer sales is due to an 8.4% increase in excise duty on alcoholic beer and an almost 200% increase in consumption tax for non-alcoholic beer, pushing prices up, the drinks business news portal reported.

The association also identified that people also notably drank less due to the poor weather, which led to fewer opportunities for barbecues and drinking in pub gardens.

Nederlandse Brouwers said it was concerned about the sudden drop in non-alcoholic beer consumption in particular and has called upon its government to scrap the tax in a bid to support the industry.

On January 1, 2024, the Dutch government increased consumption tax on non-alcoholic drinks from €8.83 per hectolitre to €26.13 per hectolitre.

“Now that the holiday season has arrived, we hope people will go to the terrace or beach more often to drink a beer together," said Nederlandse Brouwers chairman Fred Teevan.

"Or enjoy the many beautiful beers brewed by Dutch brewers during a barbecue. It would be nice if we finally had a longer period of sunny weather. In any case, breweries are ready to respond to a beautiful summer.”

Image: Kapil Tejwani, Scop.io 

Thailand slashes taxes on alcoholic drinks

Good news for thirsty visitors to Thailand.

In a boost for tourism, the Thai government has approved a tax cut on alcohol, and for entertainment venues.

Taxes on wine will be halved from 10% to 5% while the 10% tax on spirits will be scrapped, Travel Mole reports.

The excise tax levied on entertainment venues will be halved to 5%.

The measures are described as "temporary" and will last until the end of 2024.

This is the latest move to boost the night time entertainment industry after opening hours were extended to 4am recently in major tourism areas.

Wine lovers, used to absurd mark-ups on wines, particularly, will be pleased by the news with import tariffs on wines, currently assessed at 54% and 60% of declared value, also be exempted for one year.

Which means no more paying $50 or more for a bottle of Jacob's Creek in a 7/11 store.

Finance Ministry Permanent Secretary Lawan Saengsanit said it was planned that additional spending by tourists will offset any cut in tax revenues.

The government said it reached the amended tourist arrivals target of 29 million in 2023. It is forecasting 34 million tourist arrivals for 2024.

Image: Walter Pucher, Scop.io

  Walter Pucher  on  Scopio

 

WHO targets alcohol industry

The World Health Organisation (WHO) this week called for increased taxes on alcoholic beverages, particularly targeting wine.

The WHO issued at statement urging countries to increase taxes on what it called “unhealthy products” including alcohol and sweetened beverages (SSBs).

Alcoholic beverages are estimated to have caused 2.6 million deaths globally per year, the UN-backed organisation said.

It singled out wine as a main alcoholic beverage exempted from excise taxes - mainly in Europe, home to the world’s biggest wine producers and main wine consumption markets.

The WHO says at least 148 countries have applied excise taxes to alcoholic beverages at the national level. “However, wine is exempted from excise taxes in at least 22 countries, most of which are in the European region,” it says.

Citing a 2017 study, WHO says that taxes that increase alcohol prices by 50% would help avert over 21 million deaths over 50 years and generate nearly SUS17 trillion in additional revenues.

Half of all countries taxing SSBs are also taxing water, which is not recommended by WHO.

“Taxing unhealthy products creates healthier populations," says Dr Rűdiger Krech, director of Health Promotion for the WHO.

"It has a positive ripple effect across society - less disease and debilitation and revenue for governments to provide public services.

"In the case of alcohol, taxes also help prevent violence and road traffic injuries.”

Countries like Lithuania, that increased alcohol tax in 2017 to drive down consumption have decreased deaths from alcohol-related diseases, the WHO says.

It also says research shows that taxing alcohol and SSBs helps cut down use of these products and gives companies a reason to make healthier products. While at the same time tax on these products help prevent injuries and noncommunicable diseases such as cancers, diabetes and heart diseases

Image: Louw Lemmer, Scop.io.

France to raise flight taxes and boost rail travel

France is to raise taxes on airline tickets as a way to encourage people to travel on more environmentally friendly planes.

French Transport Minister Clément Beaune announced the planned measures, which follow the banning on short-haul flights within the country.

“Many people are shocked by the fact that it’s often cheaper to take a flight than a train,” Beaune said..

The changes will be applied to routes between Paris and regional cities like such as Lyon, Nantes and Bordeaux.

The tax increase could be included in France's 2024 budget, Travel Mole reported.

‘In a climate crisis, giving tax exemptions to a super polluting sector is incompatible with the challenges of today,” said Jo Dardenne, aviation director at campaign group Transport and Environment.

Airlines for Europe, which obviously has a vested interest, criticised the move.

“France already imposes some of the EU’s steepest flight taxes," the organisaton said. "Hiking them further will not guarantee more funding for decarbonisation.”

The French government plans to use the taxes raised to finance an expansion and improvement of its rail sector to the tune of €100 million.

Speaking personally, I have always preferred taking trains to planes for trips within France, particularly the TGV (fast) services. 

The trains are invariably fast and efficient - unless there is a strike, which is nor unknown. 

Another tourism hotspot plans to tax visitors

Regular readers will have noticed a trend towards destinations imposing taxes on the visitors they try so hard to attract.

From entry taxes to bed taxes, holiday destinations are increasingly looking for their pound of financial flesh from tourists.

The South Korean resort island of Jeju - known for its many beach resorts - is the latest spot investigating new ways to gouge visitors.

It is one of the country’s top leisure destinations and is predominately visited by domestic tourists, although its popularity is growing with foreigners.

Local officials noted Jeju's popularity has led to growing garbage and sewage issues, Travel Mole reports.

Jeju is contemplating a number of different series of tourist fees, including imposing an entry fee.

It also is planning a KRW1,500 ($AU1.50) fee per night, while visitors renting a car or minivan will pay KRW5,000 and KRW10,000 respectively.

Officials at Jeju Special Self-Governing Province said the average total tourist fee would be around KRW8,170 per day, which is a fairly hefty $9.20.

Why visiting New Zealand is about to become more expensive

Foreign tourists arriving in New Zealand will be stung by a more than double hike of the cost of the border processing levy (BPL).

Which doesn't seem a particularly smart move with tourism in decline. 

From the start of December, the BPL increases from $20.11 to $43.73 per airline passenger return trip and from $21.06 to $36.72 for cruise passengers, Travel Mole reported.


The BPL is used to pay for customs operations and biosecurity services.


The fee hike has unsurprisingly disappointed the tourism industry, especially as there is still no news when New Zealand borders will actually open for foreign visitors.


"We are surprised the BPL is going up before we know when our borders will actually open and what the demand for travel will be," Tourism Industry Aotearoa chief executive Chris Roberts said.


"The new fees are supposed to recover the full cost of the border services over the next three years, but it is impossible to accurately predict what the travel patterns will be.


"Having secure border services in a pandemic is a critical public health requirement and it is not sensible to reintroduce the full-cost recovery model while border restrictions remain in place." 

He makes sense. 

The New Zealand Government has said it wants to transform the tourism industry in the wake of the Covid-19 pandemic, targeting more high-spending visitors amid concerns mass tourism is damaging the environment.

# Image: Auckland Airport