“class of liquor means a class of liquor as identified in the table in the Schedule

“rate, when referring to a rate for a class of liquor, means the percentage figure, set out in the fourth column of the table in the Schedule, that is used to calculate the levy for that class of liquor”.

“wine means the product of the complete or partial fermentation of any fruit (including grapes), vegetable, or honey, and—

• “(a) includes—

  • “(i) cider, perry, and mead; and

  • “(ii) fortified wines such as sherry, port, and fruit or vegetable-based liquors; but

• “(b) does not include—

  • “(i) beer or spirits; or

  • “(ii) any liquor containing no more than 1.15% volume of alcohol”.

• “(5) For the purposes of section 26(2) and the Schedule, liquor that is exported from New Zealand during the preceding statistical year is not to be treated as liquor that is imported into or manufactured in New Zealand.”

“26 Minister to determine amounts of levy for each class of liquor

• “(1) After assessing the aggregate levy figure in respect of any financial year, the Minister must determine, in accordance with subsection (2), the amounts of the levies payable under section 28, in respect of each class of liquor, in order to yield an amount equivalent to the aggregate levy figure.

  “(2) The process for determining the amounts of levy is as follows:

  • “(a) Step 1—for each class of liquor, determine the total number of litres of that class of liquor that was imported into or manufactured in New Zealand during the preceding statistical year:

  • “(b) Step 2—for each class of liquor, multiply the result of step 1 by the appropriate rate, as set out in the table in the Schedule. This gives the (nominal) total number of litres of alcohol for each class of liquor:

  • “(c) Step 3—for each class of liquor, divide the number of litres of alcohol for that class by the total number of litres of alcohol for all classes. This gives the proportion of the aggregate levy figure that is to be borne by that class of liquor in the next financial year:

  • “(d) Step 4—for each class of liquor, multiply the result of step 3 by the aggregate levy figure. This gives the amount of levy to be borne by each class of liquor in the next financial year:

  • “(e) Step 5—for each class of liquor, divide the result of step 4 by the result of step 1. This gives the amount of levy payable on each litre of liquor of that class in the next financial year.

  “(3) If a rate for a class of liquor is described in the table in the Schedule as a variable rate, the Minister must—

  • “(a) determine the rate to be applied to that class of liquor; and

  • “(b) in making that determination, use the method for determining variable rates that is described in the Schedule.

“27 Rate of levy fixed by Order in Council

• “(1) The Governor-General may, by Order in Council, fix for the next financial year, by reference to each class of liquor, the amount of levy payable under section 28.

  “(2) The amount of levy for each class of liquor must be as determined by the Minister in accordance with section 26(2).

  “(3) If a rate for a class of liquor is described in the table in the Schedule as a variable rate, the Order in Council must identify the rate determined by the Minister under section 26(3) and used for the purpose of section 26(2).”

• “(1) In every financial year a levy of the amount set by Order in Council made under section 27 is payable by every person who—

  • “(a) enters for home consumption (as that expression is used in the Customs and Excise Act 1996) any imported liquor that contains more than 1.15% volume of alcohol; or

  • “(b) manufactures in New Zealand any beer or spirits; or

  • “(c) sells any wine manufactured by that person in New Zealand.”

• “(ba) amending or replacing the table in the Schedule, and amending, omitting, or reinserting the description of the method for determining variable rates:”.

• “(2) Regulations under subsection (1)(ba) may be made only—

  • “(a) for the purpose of aligning the rates for classes of liquor under this Act with the classification system applied to alcoholic beverages under Part B of Schedule 3 of the Customs and Excise Act 1996; and

  • “(b) after consultation with the Minister of Customs.”