Chris Snowdon has a new report out today.
The Wages of Sin Taxes: The True Cost of Taxing Alcohol, Tobacco and Other 'Vices' is published by the Adam Smith Institute.
It argues that so-called 'sin taxes' on cigarettes and alcohol are designed to boost revenue, not improve public health; minimum alcohol pricing will exacerbate poverty and entrench inequality without discouraging binge drinking; and most of the costs of drinking and smoking fall on individual consumers, not the public.
Says Chris:
"Campaigners for sin taxes and minimum pricing often claim that 'healthy citizens' are forced to bear the cost of other people’s lifestyles. In fact, the evidence shows that smokers take less from the communal pot than the average Briton and the money raised from alcohol duty comfortably pays for any burden drinking places on public services. If the aim of policy is to make individuals pay their way, the government should slash the beer tax and subsidise cigarettes.
"We are not seriously suggesting the government does this, but if politicians insist on increasing taxes on these products, they should admit that the purpose is to raise revenue. Essentially the government is forcing the people who are least likely to live to extreme old age to pay for the escalating costs of an ageing population.
"As we show in the report, amongst EU countries there is no relationship between alcohol prices and alcohol related harm, nor is there an association between cigarette prices and smoking rates. The only significant effects that sin taxes have are to make the poor poorer and black marketeers richer.”
In a week in which the Scottish Government has announced plans to introduce a minimum price per unit of alcohol, Chris's report could not be more topical.
For further information click here.
See also: The wages of sin taxes (Velvet Glove Iron Fist)