Fed: AHA says hoteliers hurting from GST impact

AAP General News (Australia)
02-01-2001
Fed: AHA says hoteliers hurting from GST impact

CANBERRA, Feb 1 AAP - Hoteliers say the inflationary impact of the GST which lifted
beer prices overnight has just added to their existing troubles.

Beer, cigarette and petrol prices rose at midnight after excise increases in line with
inflation came into effect.

The latest tax rises will add about five cents to the price of a pot of beer or middy,
20 cents to a packet of cigarettes and 1.7 cents a litre to the price of petrol.

Australian Hotels Association (AHA) spokesman Simon Birmingham said hoteliers were
already feeling the impact of the rises, before the midnight price hike.

"Last July when the major increase came in with the new tax system excise pushed the
prices for the average drink up by around 20 cents in that area," Mr Birmingham told ABC
radio.

"So that's of concern.

"This is on top of that.

"And it really is starting to be felt out there amongst many hoteliers."

The Australian Automobile Association has accused the government of blatant profiteering.

AAP lm/sp

KEYWORD: TAX BEER

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