Mental Health Minister Matt Doocey. Photo: RNZ / Reece Baker
Mental Health Minister Matt Doocey has signalled his potential support for another tax hike on booze next year.
During Parliament's health select committee meeting today, Green MP Kahurangi Carter asked the Minister why his government had not raised the alcohol levy to the level recommended by an independent report.
In July last year, the government raised the levy from $11.5 million to $16.6m a year - less than half the recommendation of $37.3m.
Carter questioned Doocey whether the government would be heeding that recommendation in July 2026.
"If not, what is the justification for keeping the alcohol levy at half its recommended value when the cost of FASD [foetal alcohol syndrome disorder] and alcohol harm more broadly grossly exceeds that value - at about $9b a year? And is there negligible impact on the cost of alcohol?"
Doocey replied it was "a fair question", but noted it was first increase of the levy in 15 years.
Furthermore, at the same time Cabinet had signed off on a new investment framework, which was now in place.
"I don't want to get ahead of Cabinet for the next review of the alcohol levy, because it is a Cabinet decision. But I can say as a Minister, I'm open to that, and that's the process we will step through."
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