Tasmanian Whisky Producers Association secretary and Port Arthur distiller William McHenry said there had been a “micro explosion” of spirits producers in the state who were being held back by the outdated legislation.

”The best whisky in the world has come out of Tasmania, we are getting global recognition, so we are producing what is clearly a high quality product but we literally have this ball and chain around our ankles,” he said.

Under the laws, whisky and spirits producers are taxed about 72 per cent more per unit of alcohol than wine or beer producers. The alcohol excise is paid upfront and is currently at more than $1 per standard drink for whisky. Beer and wine producers receive tax rebates that alleviate some of these costs. However whisky and spirits producers receive nothing.

Federal member for Lyons Eric Hutchinson has also joined his voice to the push to change taxation, citing the large number of distilleries in his electorate as one of the reasons he has begun discussions with the government.

He said the way the taxation was set up “made little sense” and said arguably any change to the cost excise would have benefits for Tasmania.

“Our whisky industry is taking off, there’s no question, it’s advanced food manufacturing but one of the biggest impediments is cash flow for excise,” he said.

“There is an inequity here.”

The Distilled Spirits Council of Australia (DSICA) has begun a campaign to urge the government to rethink its alcohol taxation legislation that includes newspaper advertising and an online petition.

Chairman Michael McShane said he believed the political climate had changed in recent years and that the time was right to push for the taxation review.

“Australia has the perfect opportunity to develop this industry...the right climate and the right water...we would do anything to encourage innovation in this sector,” he said.

Mr McShane said any review of taxation would benefit Tasmania as it was producing some of the best whisky in the world. He said the industry was not looking for a hand-out but a discussion.