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Drinks in Australia to Go Up

Drinkers in Australia may face soaring prices next month, after Health Minister Nicola Roxon said higher tax was likely be re-introduced.

Alcopop tax hike was defeated last month, after a year of debate, but after British duty was increased by two percent on all forms of alcohol, similar increase in Australia appears imminent.

Citibank experts say: "With the Government heading for a $90 billion budgetary deficit, (it needs) to lever existing and generate new sources of revenue. The relatively inelastic nature of demand for alcoholic beverages provides the Government with an attractive opportunity to generate higher tax revenue whilst also supporting its preventative health aims."