Government undertakings to ban the sale of cut-price alcohol in supermarkets and off-licences have been in circulation for more than three years. Rather than address health issues and curb sales, however, the last government actually reduced excise duties and made alcohol cheaper. Apart from a general VAT rise, nothing was done this week to alter that situation. But change may be on the way if commitments made to the IMF-EU troika are kept. Excise duties have been identified as key tax-raising areas for 2013.
Higher excise duties will reduce abuse levels. Research has shown that price is a key driver of alcohol consumption, particularly where young people are concerned, and prices in supermarkets are about half of those in pubs. A tax rise, in itself, will not address the broader issue of below-cost selling, loss-leader promotions and other strategies that supermarkets have been using to promote their general sales. That can only be done effectively through the imposition of a minimum price, based on the alcohol content of the products being sold, and it will require legislation.
Source: Irish Times, 09/12/2011
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