High taxes giving rise to homebrew: Official

MANUFACTURERS Council of Papua New Guinea chief executive officer Chey Scovell says taxes on low to medium alcoholic drinks are too high, driving the production of homebrew and illicit alcohols.
“The Government’s 500 per cent tax increase on social drinks will also create many problems because it only means that it is going to be cheaper for people to turn to homebrew,” he said.
The tax on lower alcohol mixed drink was now higher than pure spirits, he added.
“We also think that the taxes on alcohol, particularly alcohol with low and medium strength, are still too high and that is driving the growth of homebrew production and illegal and illicit alcohol,” Scovell said.
He said the Government had been combating social and health issues caused by anti-social drinking by increasing the excise duty on alcohol and mixed drinks over the past years.
“In Budget 2022, the Government increased the excise rates of anti-social drinks (ready to drink) by 400 per cent. In Budget 2023, it is imposing an additional one-off increase of 493 per cent excise duty on anti-social drinks.
“It believes the measures will address the negative social and health issues associated with the consumption of anti-social alcohol products,” he added.