The Rudd government's controversial $3.1 billion tax hike on so-called alcopops will be scrutinised by a parliamentary committee today.
The government increased the excise on ready-to-drink (RTD) alcoholic beverages by 70 per cent to bring them in line with unmixed spirits, closing a loophole created when the GST was introduced in 2000.
The move was originally predicted to raise $2 billion, but budget papers forecast $3.1 billion revenue in 2008-09 and higher thereafter.
The coalition successfully moved to have the increase investigated by the Senate Standing Committee on Community Affairs, which will hold a public hearing in Canberra today.
The committee, which will hear from industry and welfare groups and other experts, will examine the potential effectiveness of the tax hike and the evidence and advice underpinning the government's decision.
It will also examine the modelling of the government's revenue estimates and the consumption patterns of alcopops.