The high tax imposed on our beer – and its unintended consequences
ESTIMATES suggest that 10% of bottled or canned beer sold in the UK has had no duty paid on it.
In addition, increasing quantities of counterfeit spirits are being sold by rogue and legitimate retailers.
As a result, the UK loses more revenue from alcohol tax evasion than any other EU state.
Illicit alcohol is not only about filling up a van at a Calais supermarket, but includes illegal breweries and distilleries.
The counterfeit alcohol so created frequently contains dangerous levels of substances that can cause toxic hepatitis, blindness and death.
Alcohol smuggling and counterfeiting are often linked to other illegal activities such as drug smuggling, prostitution, money-laundering and terrorism.
Illicit alcohol usage is affected by a number of factors, particularly high taxes.
When prices go up, drinkers – depending on stances, will:
Do as the Government intends and drink less.
Economise on other household costs. Buy cheaper drinks. Switch from pubs to supermarkets and off licences. Make their own alcohol. Shop abroad. Buy counterfeit or smuggled alcohol.
Buy surrogate alcohol (eg methanol, antifreeze, aftershave).
Studies from throughout Europe show that levels of taxation don’t in themselves greatly reduce drinking; as the price of legitimate alcohol rises, the demand for smuggled and counterfeit alcohol increases as well.
One of the aims of our current alcohol tax regime is to cut consumption, but an unintended consequence is an expanding black market and loss of income to the Treasury.
Treating alcohol sales as a cash their circum- cow that can be milked indefinitely is irresponsibly shortsighted, and carries significant risks for society in terms of health, crime and poverty.
Despite a few small cuts in recent years, UK beer duty remains among the highest in the EU.
Camra has broken down the tax on a £4 pub pint as follows: 15p business rates; 49p beer tax; 67p VAT; 15p in other taxes.
This means that more than a third of the price of your pint is tax
Camra is calling for a beer duty freeze, and for greater protection for pubs in England by permanent relief on business rates.
You can help this campaign, whether or not you’re a Camra member, by going to: tiny.cc/ uka3my.
The Southport and West Lancs Camra website is at: www.southport.camra.org.uk.
For previous Camra articles in this paper, go to: tinyurl.com/vispubs.