Sin Tax Alcohol
About Sin Tax Alcohol
Alcohol taxes are among the oldest sin taxes. In 1600, England imposed taxes on beer and ale. Alcohol taxes fund government services and are justified as correcting the external costs of alcohol consumption, including health costs, accidents, and crime. The World Health Organization recommends alcohol taxes as the most effective policy to reduce harmful drinking. Alcohol taxes vary dramatically. Nordic countries have the highest alcohol taxes, with a bottle of vodka costing over 40 in Norway. The UK introduced minimum unit pricing in Scotland in 2018 to reduce cheap high strength alcohol. In the US, federal alcohol taxes are relatively low and have not kept pace with inflation. Alcohol tax revenue has declined as a share of total revenue in most countries.
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