The Institute of Alcohol Studies (IAS) has released a new report advocating a rise in alcohol duties as the 2020 spring Budget approaches. Health groups have been repeatedly disappointed by previous budgets which have generally seen real term cuts favouring industry group calls.
The latest report though aims to debunk the seemingly intuitive claim that higher alcohol taxes disproportionately hurt the poorest. However, the report argues it is poorer groups who would see greater health benefits as a result of lower drinking and by receiving a greater share of any increase in public spending derived from increased revenue. The analysis, which calculated the amount of alcohol duty that different households paid as a share of their income and total spending, finds taxes account for a similar share of the incomes and budgets of rich and poor households alike, and at worst are only mildly regressive.
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