The Northern Territory's cask wine levy: health and taxation policy implications

Objective: To examine the effect of the application, and removal, in the No rthern Territory of a levy on the sale of cask wine - a beverage shown to c ontribute disproportionately to alcohol-related harm. Method: Using data on licensee purchases of alcoholic beverages and ABS pop ulation data, estimates were made of per capita consumption of pure alcohol by beverage type. Time series variables were analysed using multiple linea r regression analysis. Results: Prior to the introduction of the levy, quarterly per capita consum ption of cask wine among persons aged greater than or equal to 15 years was 0.73 litres. During the levy period, this fell to 0.49 litres and followin g removal of the levy rose to 0.58 litres. Imposition of the levy had no si gnificant effect on the consumption of other beverages. Conclusions: Taxation is an effective means of reducing excessive alcohol c onsumption and related harm. Implications: In the interests of public health, support should be given to the introduction of a tiered tax based on alcohol content.