Naughty, naughty! Scots paying highest ‘sin taxes’ in the UK

Most per head on booze, bets and tobacco

SCOTS pay more in ‘sin taxes’ than the rest of the UK – with drinking, smoking and gambling earning billions of pounds for the Treasury each year.

The taxes are imposed by Westminster and the same rates apply across the country – but more is paid north of the Border by percentage of the population.

The analysis by accountants UHY Hacker Young is a blow to the Scottish Government’s bid to improve the nation’s health.

Scotland was the first part of the UK to ban smoking in public places. The Government has launched various crackdowns on drinkers – including minimum alcohol pricing – and has campaigned on problem gambling.

But Ministers still have their work cut out, figures show.

Despite comprising only 8.5 per cent of the UK population, Scots paid 13.4 per cent of the duty collected on spirits in 2017-18 and 9.6 per cent of all alcohol duty – pouring £1.1billion a year into Treasury coffers.

Scots also paid £1billion in tobacco duties – 11.4 per cent of the total. This equates to £226 per adult, compared with £156 in England.

This is despite the Scottish Government’s aim to create a tobacco-free generation by 2034.

As well as banning smoking in enclosed public places, ministers brought in plain packaging and outlawed shop displays.

Meanwhile, last year Scots paid £258 million in betting taxes – 9 per cent of the UK total.

Clive Gawthorpe, a partner at UHY Hacker Young, said: ‘The Government’s targeting of taxes on “harmful” consumption has hit taxpayers in Scotland noticeably harder.

‘It is understandable that the Treasury would seek to levy taxes on those whose consumption may create a bigger burden on public services. However, this approach must be balanced against the risk of hitting lowerused income people disproportionately. There is also the possibility that over-taxing tobacco will result in more people turning to illegally imported goods.

‘That could see HMRC’s income fall, rather than rise.’

Campaigners claimed drinkers, smokers and gamblers are being as ‘cash cows’. Ben Ramanauskas, policy analyst at the TaxPayers’ Alliance, said: ‘Given the health and social problems excessive smoking, drinking and gambling cause, it is right there is a reasonable duty levied.

‘However, these duties hit the poorest and most vulnerable people the hardest. They should be lowered so that the responsible are not punished, while people struggling with addiction receive the help they need, rather than being treated as cash cows by a greedy government.’

Alcohol campaigners said the figures were no surprise.

Alison Douglas, chief executive of Alcohol Focus Scotland, said: ‘In 2017, 14 per cent more alcohol was sold per adult in Scotland than in England and Wales, so it’s not surprising to hear that we pay a disproportionate share of taxes on these products.’

A Scottish Government spokesman said: ‘We continue to make major progress in tackling public health issues including smoking and problematic alcohol use.’