The WET: Is it a Good Drop?

The wine equalisation tax (WET), introduced by the A New Tax System (Wine Equalisation Tax) Act 1999 (Cth), is, in essence, a wholesale sales tax on certain wine containing a specified content of potable alcohol that is sold for consumption in Australia. The apparent fiscal purpose of the Act is to...

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Main Authors: Barton, Glenton, Morgan, Annette, Pinto, Dale
Format: Journal Article
Published: Taxation Institute of Australia 2014
Online Access:http://hdl.handle.net/20.500.11937/18938
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author Barton, Glenton
Morgan, Annette
Pinto, Dale
author_facet Barton, Glenton
Morgan, Annette
Pinto, Dale
author_sort Barton, Glenton
building Curtin Institutional Repository
collection Online Access
description The wine equalisation tax (WET), introduced by the A New Tax System (Wine Equalisation Tax) Act 1999 (Cth), is, in essence, a wholesale sales tax on certain wine containing a specified content of potable alcohol that is sold for consumption in Australia. The apparent fiscal purpose of the Act is to reduce and recoup the public costs of alcohol abuse. The hallmarks of sound tax legislation are traditionally encapsulated in the tax policy principles of simplicity, equity, economic efficiency and fiscal adequacy. This article explores the extent to which these hallmarks are reflected in the rules of the Act. The authors conclude that the WET is not a "good tax" in light of any of the principles, and its deficiencies raise the threshold issue of whether alcohol taxation is an appropriate way to address the public costs of alcohol abuse. In the authors' opinion, there is no valid argument for its retention.
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spelling curtin-20.500.11937-189382017-01-30T12:10:48Z The WET: Is it a Good Drop? Barton, Glenton Morgan, Annette Pinto, Dale The wine equalisation tax (WET), introduced by the A New Tax System (Wine Equalisation Tax) Act 1999 (Cth), is, in essence, a wholesale sales tax on certain wine containing a specified content of potable alcohol that is sold for consumption in Australia. The apparent fiscal purpose of the Act is to reduce and recoup the public costs of alcohol abuse. The hallmarks of sound tax legislation are traditionally encapsulated in the tax policy principles of simplicity, equity, economic efficiency and fiscal adequacy. This article explores the extent to which these hallmarks are reflected in the rules of the Act. The authors conclude that the WET is not a "good tax" in light of any of the principles, and its deficiencies raise the threshold issue of whether alcohol taxation is an appropriate way to address the public costs of alcohol abuse. In the authors' opinion, there is no valid argument for its retention. 2014 Journal Article http://hdl.handle.net/20.500.11937/18938 Taxation Institute of Australia fulltext
spellingShingle Barton, Glenton
Morgan, Annette
Pinto, Dale
The WET: Is it a Good Drop?
title The WET: Is it a Good Drop?
title_full The WET: Is it a Good Drop?
title_fullStr The WET: Is it a Good Drop?
title_full_unstemmed The WET: Is it a Good Drop?
title_short The WET: Is it a Good Drop?
title_sort wet: is it a good drop?
url http://hdl.handle.net/20.500.11937/18938