Supermarkets prefer alcohol tax rise to minimum prices

Foodstuffs NZ's Melissa Hodd said supermarkets would prefer the raising of tax levels on alcohol. Photo / Supplied

Supermarkets would prefer increased taxes on alcohol to imposition of minimum prices to try to stop discounting.

A Law Commission report last week recommended both raising taxes and investigating a minimum price scheme.

Alcohol Advisory Council chief executive Gerard Vaughan said a minimum price scheme appealed most because it would target the biggest problem - heavily discounted liquor sold mainly by supermarkets.

"That's where you see these extremes, like a dozen beer for $8.99, wine for $5 and two-for-one deals," he said. "In some modelling work, you wouldn't be able to buy the real cheap stuff, but you'd still be able to buy the $10 bottle of wine."

But Foodstuffs NZ executive manager Melissa Hodd said supermarkets would prefer the raising of tax levels on alcohol.

"Minimum pricing has been floated in recent months as part of the Law Commission review. It's not a policy there is a lot of international experience with."

Ms Hodd said minimum prices had been implemented only in some Canadian provinces, where alcohol was a state monopoly.

But the Law Commission report points to a Scottish Government proposal expected to be finalised before the commission's final report next year.

"The minimum pricing model has considerable merit, particularly in a commercial environment where there is a risk of excise tax increases not being fully reflected in the retail price," the commission says. "The Law Commission ... will continue to examine minimum pricing as the proposal is further developed in Scotland."

* www.lawcom.govt.nz