Study: Tax the amount of alcohol in a drink

Volumetric taxation of alcohol would be the most cost-effective way to combat binge drinking according to an Australian study funded by Alcohol Education and Rehabilitation (AER) Foundation. Banning alcohol advertising would be the second most cost-effective and sustainable measure with raising the legal drinking age to 21 years coming in third.

Christopher Doran, from the National Drug and Alcohol Research Centre, and Theo Vos from the University of Queensland, co-authors of the study say volumetric taxation and banning alcohol advertising should be a high priority.

"We need a fairer system that taxes alcohol as alcohol, rather than having different rates for beer, wine or spirits" said Daryl Smeaton, chief executive of AER in The Age. "Volumetric taxation makes sense from an economic, health and community perspective and is a crucial first step that needs to be taken in order to change patterns of alcohol consumption."

Currently wine has the lowest taxation of any alcohol beverage, based on alcohol content. If a volumetric tax were to be implemented it would be expected to raise the price of wine, and cask wine in particular. According to The Age, winemakers recently told a Senate enquiry that volumetric tax "would lead to a drop of 250,000 tonnes less in demand for grapes and 3,500 people losing their jobs".

Source: The Age

Alcopop tax enough?

Steve Fielding, Family First Senator-elect, will apparently take on the government and its moves against binge drinking as he holds back his support for the proposed pre-mixed alcoholic drink tax rise.

"If the Rudd Government is serious about creating a culture of responsible drinking, and it wants to prove the alcopops tax is not just a tax grab, (it) would also introduce alcohol warning labels to alcopops and all other alcohol products," Mr Fielding said.

Bob Brown, leader of the Australian Greens raised similar concerns and along with independent Nick Xenophon the three men will share the balance of power in the new Senate. None of the men have committed support to the Government's tax rise and the Opposition Leader Brendan Nelson has promised to block it.

Australia currently has no uniform tax on a set measure of alcohol - taxes on a litre of wine, beer or spirits are all different. Shadow treasurer Malcolm Turnbull added that the move only added to the anomalies of alcohol taxation.

The Age has taken the opportunity to rehash expert opinion on the alcopop tax issue, listing the following expert's opinions in support of the government's move with their recent article:
"Evidence around the world shows that volumetric taxation is one of the most effective levers for reducing excessive consumption." - John Rogerson, chief executive of the Australian Drug Foundation.
"International evidence demonstrates that taxing alcopops at the same rate as bottled spirits will change the consumption patters among young people and lead to less alcohol-related harm." - Daryl Smeaton, chief executive of Alcohol Education and Rehabilitation Foundation
"There is now drastic evidence showing that young women are out-drinking their male counterparts, and unfortunately many of them drink to get drunk. This has been helped by the ready availability of cheap spirit-based drinks, which have become the first drink of choice for young women." - Professor Mike Daube, president of the Public Health Association of Australia
"It's easy to ridicule such measures but they tend to be surprisingly effective." - Professor John Toumbourou, Deakin University
"Using taxation or pricing as a lever for reducing harmful consumption is a really good idea." - Rob Moodie, chairman of the National Prevention Health Taskforce
"Frankly, the more we can do to make these sweeter beverages less available to young people, whose bodies and brains are still developing, the better." - Professor Richard Mattick, National Drug and Alcohol Research Centre.

Source: The Age