Taxes Keep Down Strength Of Beer

Chronicle (Levin), 23 June 1949, Page 5

Taxes Keep Down Strength Of Beer

WELLINGTON, June 22. It appears unlikely at present that there 'Will be any iucrease in the strength of beer. This is _ elear_ from remarks made today by Sir William Perrv, speaking at the annual meeting of New 'Zealand Breweries Ltd., in Wellington.Sir William, who is chairman of directors, said that though since January 1 of this year, ther.e was no restriction on the gravity and strength at which beer might be brewed, an in"creased exeise dnty was payable on any stronger beer. It was tr-erefore * impossible to increase the strength of beer generally unless either the public jpore the increased cost or the Government reduced the excise duty. Today the "purchase price of a lOoz. glass of beer which sold for 6d, was divided approximately as follows: To. the Government for beer duty and " saies tax, 3d; to the retailer 'for freiglits, wages, -rent, interest, overhead and his taxation, 2d; to the brewer for materials, wages, overhead, his taxation • and shareholders ' dividends, ld.

The wholesale priee ,of beer (excluding excise duty and saies tax) "Ead"not been increased for 35 -years, said Sir William. During ithe last year costs had shown a further sharp increase. The company "had, in various forms of taxation, been responsible for the eollection and payment of £3,939,434, an increase of more than £63,000 over the previous year. The brewers had been obliged to seek barley outside New Zealand at prices higher than the price paid to local produeers.