Minister for Internal Affairs, Alfred Maoh, said the move came because the number of violent incidents and criminal activities in and around Port Vila had increased.
Mr Maoh said a lot of the crime and misbehaviour could be attributed to the easy access to alcohol for young people.
"Not only the crimes. We have the results in schools and we have the behaviour in the house, it has been changed dramatically and the parents are pointing fingers everywhere and government and everybody has been pointing fingers at each other. Basically I thought, well, maybe put some measures in place," said Alfred Maoh.
Alfred Maoh said the legislation would be introduced into Parliament when it sits in November.
He said in the meantime customers would be asked to show their passports or drivers licences when purchasing alcohol, cigarettes or kava.