THE FEDERAL Government will consider tax relief for microbreweries and distilleries as part of its review of pre-budget submissions.
Microbrewers have joined forces to call for tax treatment equal to domestic wineries, arguing they have a specialty product and an industry worth about $295million to the Australian economy.
The Australian Distillers Association has also approached the Government over the past two years asking for tax relief parity with wineries.
Wineries receive a wine equalisation tax producer rebate of up to $500,000 and small microbreweries receive a rebate of up to $10,000, while distilleries receive no rebate.
A spokesman for Assistant Treasurer Chris Bowen said the Government had received thousands of submissions and the review committee would examine industry submissions as part of the budget process.
He said the Government would not comment on which submissions would be ruled in or out.
Calls to increase alcohol tax surfaced after Kevin Rudd outlined a $53 million strategy last week to discourage binge drinking among young people.
Up to $20 million would be spent on a "hard-hitting" education campaign and $19.1 million on programs designed to prevent young people from developing serious alcohol problems.
A spokesman for Health Minister Nicola Roxon said the Government had no plans to introduce additional taxes on alcohol.
NSW Brewers Association committee member Lachie McOmish has lobbied the Government for about 15years to cut taxes for microbrewers and encourage the development of the industry.
The owner of Canberra's Wig and Pen Tavern and Brewery described any calls to increase alcohol taxes as "completely ignorant of the way in which the hospitality industry worked".
"If you make it much more expensive for someone to go [purchase] lower volume of a higher quality product at a higher price, you remove that end of the market.
"The market then becomes cheap product, even more cheap product."
Mr McOmish said craft or boutique beer should be part of the plan to combat binge drinking. Higher quality craft beers were often more strongly flavoured, uncomfortable to drink in large volumes and could be three times more expensive than regular beers.
But he said the industry was struggling.
About one in 10 microbreweries survived three years after being established and the market was seeing a surge of imports.
The Beer & Brewer magazine reported foreign premium beers grew 20.2 per cent in 2006-07 compared with 5.3 per cent for domestic premium beers.
Distillers Association chairman Cameron Syme said the association supported effective measures to reduce binge drinking.
"We need to make sure that whatever initiatives are put in place actually achieve the right outcome."
He said tax policy was one way to attempt to achieve social outcomes.
"It is possible to tackle the social issues and support the Australian industry. These are separate issues."
Spirits are taxed at a significantly higher rate than wine, pre-mixed alcohol and most beers.
Mr Syme said the Government should reassess alcohol policies in light of the particular activities it wished to target.
The association also supported the microbreweries in seeking tax relief.
"There is growing interest in premium Australian product," Mr Syme said.
But he said the economic barriers to entry were significant and boutique distilleries had an added disadvantage under the current tax regime.