A Perth distillery is warning consumers will soon be paying more for spirits after the Federal government increased the excise applied to the alcohol by 2.1 per cent.

Alasdair Malloch from Whipper Snapper Distillery told Mark Gibson on Perth LIVE, it is the fourth increase in two years.

Press PLAY to hear Mr Malloch explain how the excise will impact his business and the consumer.

John Parker, owner of The Royal and The Standard, called through to Perth LIVE after hearing the interview.

He told Mark Gibson the latest tax increase came as news to him, and would force his venues to pass the increase on to consumers.

Press PLAY to hear from John Parker.