Alcohol Tax Revenue Outweighs Cost to Public Pocket in England


Published Date : Sep 03, 2015

In England, the cost of alcohol use has been over stated by public health campaigners. On the contrary, the revenue from alcohol can touch as much as 6.5 billion GBP, as stated by Institute of Economic Affairs.

According to the report, the cost of alcohol to government services such as police, health, welfare, and criminal justice comes out to be 3.9 billion GBP each year, On the other hand, the revenue from alcohol totals to be 10.4billion GBP.

The people involved in public health campaign often quote that alcohol cause burden of 20 billion GBP every year on the British society, but the figures for the Institute of Economic Affairs are incorrect.

According to the report, even if duty on alcohol was halved, the government would be benefited by more tax revenue than what is spend to deal with problems associated with alcohol. This supports the recommendation to reduce duty on alcohol by half in the United Kingdom so that it is in line with other countries in Europe.

According to a report investigated by the Cabinet Office in 2003, almost 20 billion GBP of cost to the society were associated with alcohol.

Although the author of the report made a clear disti9nction between the cost incurred to the society as a whole, instead of only taking into account the cost burden on the government and the taxpayer.

According to the report, to estimate the gross burden on the society as a result of some activity is nothing wrong about t. But neither of the estimate indicate the extent of burden on the taxpayer due to the activity. On top of this, if private costs associated with the activity are included it gives a totally wrong picture. This was stated by Snowdon, who is the author of the report created by IBA.