Tasmanian spirit producers say tax relief for distillers would boost growth and employment.
Tasmanian Whisky and Spirits Association president Mark Littler said there was scope for government excise tax relief for the industry.
He said spirit producers were burdened by a tax levy that confined business growth and placed them at a "distinct disadvantage", compared to other alcoholic beverages including beer and wine which attract lower levels of taxation.
"Spirits producers are charged a taxation rate that is commensurate with the alcohol percentage of the product they sell and because the volume of alcohol found in premium spirits products is usually above 40%, the amount of excise tax applied is therefore very high," Mr Littler said.
"Most TWSA members in Tasmania are small, start-up operations and the amount of taxation applied to their businesses inhibits cash flow and the capacity to reinvest in operations through infrastructure improvements and employment.
"As a growing industry, confidence and the capacity to reinvest are essential to the viability of many of these operators in the long term."
Australian brewers want the government to slash beer taxes saying they are "exorbitant" and higher than in the United Kingdom.
Mr Littler praised the Federal Government for some tax rebates.
"In fairness to the Federal Government, they have certainly recognised the taxation imbalance placed on our industry and over the last two years have instituted tax rebates for producers which have been very welcome," he said.
"However, there is still scope to reduce the level of excise tax currently applied."
Mr Littler said the peak body was formed in 2007 to support the spirits industry which in the past 10 years had seen the number of producers grow from a handful up to 42 members.
He said Tasmania was enjoying great coverage on the world stage for the quality of its whiskies, vodkas and gins.
"The Tasmanian Government has done an excellent job growing the Tasmanian brand and our industry has certainly benefited from this," Mr Littler said.
"We are making excellent single malt whiskies and white spirits that are being acknowledged globally through numerous award wins, including several successes by local distilleries in last week's World Whiskies Awards announced in London.
"We want to continue these successes and any relaxation from a taxation perspective would certainly be a major fillip for producers."
Federal Labor member for Lyons Brian Mitchell, whose electorate has more than 20 distilleries, said the level of taxation was unfair and must be reformed.
"Australian craft distillers are amongst some of the best in the world but they are being smashed by some of the world's highest levels of excise taxation," Mr Mitchell said.
"Instead of backing our distillers on the world stage, the Australian Government is holding them back.
Mr Mitchell, who chairs the Parliamentary Friends of Australian Spirits group said the latest excise rise this month was the 13th increase since December 2013.
"By comparison, the wine industry hasn't suffered a single increase," he said.
"This is an enormous level of unfairness for similar sectors. We have a fantastic wine industry and I want to see Australia's spirits industry given the same level of support."