Government mulls changing tobacco tax to help small businesses

The Government is taking steps to ensure that small grocery businesses can continue to hold liquor licences, Associate Justice Minister Mark Mitchell announced today.
The moves are designed to ensure the continued responsible sale and supply of alcohol. Under the Sale and Supply of Alcohol Act 2012, grocery stores can hold an off-licence if the store’s principal business is the sale of food products, which is based on sales revenue.
“The Government is aware that, as a result of tobacco excise tax increases, some grocery stores may be unable to renew off-licences to sell alcohol,” Mr Mitchell says.
As a result of tobacco excise tax increases, the main source of revenue for some grocery stores has changed to tobacco products. These stores therefore no longer qualify as grocery stores and cannot be issued an off-licence.
“It is not the purpose of tobacco excise tax increases to restrict small grocery stores from being able to sell alcohol,” Mr Mitchell says.
“To address the unintended impacts of these increases on grocery stores, the Government is making minor changes to the Sale and Supply of Alcohol Regulations 2013 to exclude the tobacco excise tax when determining a store’s principal business.”
The changes will be introduced in the coming months.
It is important to note that increase in tobacco prices is seen by many in the community as one of the factors responsible for the spurt in incidences of robberies and aggravated attacks on small businesses owners.
The Government is taking steps to ensure that small grocery businesses can continue to hold liquor licences, Associate Justice Minister Mark Mitchell announced today.
The moves are designed to ensure the continued responsible sale and supply of alcohol. Under the Sale and Supply of Alcohol Act...
The Government is taking steps to ensure that small grocery businesses can continue to hold liquor licences, Associate Justice Minister Mark Mitchell announced today.
The moves are designed to ensure the continued responsible sale and supply of alcohol. Under the Sale and Supply of Alcohol Act 2012, grocery stores can hold an off-licence if the store’s principal business is the sale of food products, which is based on sales revenue.
“The Government is aware that, as a result of tobacco excise tax increases, some grocery stores may be unable to renew off-licences to sell alcohol,” Mr Mitchell says.
As a result of tobacco excise tax increases, the main source of revenue for some grocery stores has changed to tobacco products. These stores therefore no longer qualify as grocery stores and cannot be issued an off-licence.
“It is not the purpose of tobacco excise tax increases to restrict small grocery stores from being able to sell alcohol,” Mr Mitchell says.
“To address the unintended impacts of these increases on grocery stores, the Government is making minor changes to the Sale and Supply of Alcohol Regulations 2013 to exclude the tobacco excise tax when determining a store’s principal business.”
The changes will be introduced in the coming months.
It is important to note that increase in tobacco prices is seen by many in the community as one of the factors responsible for the spurt in incidences of robberies and aggravated attacks on small businesses owners.
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