EQUAL TAX FOR EQUAL ALCOHOL? BEVERAGE TYPES AND ANTISOCIAL AND UNLAWFUL BEHAVIOURS

Recently the Economic Society of Australia published an article about the Australian alcohol tax system and the modelling of harm for various types of beverages. It notes that regular and mid strength beer is under taxed, and pre-mixed spirits in a bottle (but not a can) may be overtaxed. The paper concludes Alcohol taxation is one of the main policy instruments used by governments around the world to correct for market failures and negative externalities associated with excessive alcohol consumption. It also notes “The current Australian alcohol tax system is complex, anomalous and incoherent. There is a great need for reform and simplification.”