Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts

Wednesday, November 14, 2007

Binge drinking and tax

I want to comment on the latest moves to increase the tax on alcohol in the UK ostensibly to address the issues of "problem" drinking.

Unfortunately I don't even know where to start and I am rushed.

I've commented before that governments seem to be unable to think straight when it comes to alcohol. They need to be seen to do something because the media (in particular) loves to act all puritanical when it comes to bashing politicians (whilst simultaneously celebrating the outrageous lifestyles of certain 'celebrities').

This means that politicians can use very simplistic solutions that both please the media hacks and generate revenue for the Treasury whilst claiming to be acting in the public good. Unfortunately it is usually rubbish.

Raising duty on alcohol even further will not do anything to stop underage drinking, or weekend binge drinking, or even to reduce alcoholism. All it does is tax the vast majority who do drink sensibly. Not only that, but it perpetuates the drive towards low-cost, mass produced drinks brands that can afford to counter the price increases and build market share. These drinks do not have the kind of history or role in our society that encourages responsible enjoyment of the alcohol. Their goal is bigger volume so as to generate the necessary economies of scale to justify their investments.

The effect is to kill off any independent producers' & retailers' markets, and with them the chance of a mature drinking culture.

PLEASE lets have a sensible discussion about WHY we drink too excess in the UK, and other parts of the world (because we do) before we kill off the most sensible way out of this situation.

Wednesday, November 15, 2006

Tax me baby, one more time

Tomorrow the EU Courts finally give their verdict on the hotly anticipated issue of intra-EU Duty payments on alcohol and tobacco.

I see so many ways this could, and then might not, affect how wine is bought and sold, but I will hold fire until the judgement is released and try and make sense of it.

I suspect that after all the fretting (see how Majestic is getting concerned here), little will change in practice, but it has lots of people talking about wine ... but it is about price, once again.