Alcohol Beverages Australia (ABA) has responded to an Australian Health Policy Collaboration (AHPC) report that proposes the implementation of a volumetric tax on alcohol products to reduce alcohol harm, stating that a price raise does not target alcohol misuse.
The AHPC report said that the tax proposal is based on harm reduction. “Australia’s alcohol taxation system should be consistent, coherent and based on harm reduction principles,” AHPC stated.
“Therefore, a 10 per cent increase in the current excise for all alcohol is recommended, and volumetric excises should apply to wine, cider and other fruit-based alcohol products (which have previously been exempt from volumetric tax).”
AHPC also stated that “the impact of alcohol taxation is most strongly felt by heavy drinkers and hence can trigger behaviour change where it is most needed.”
ABA Executive Director Fergus Taylor said this is not the case.
“Evidence shows that increasing alcohol taxes reduces consumption by moderate drinkers, far more than it influences heavier drinkers,” Taylor said.
“There is no simple solution to the problem of alcohol abuse. If people have a drinking problem, they will get access to alcohol no matter how much it costs.
“Harmful consumption should be dealt with by helping those affected, not by forcing a wholesale price increase on the vast majority of people who are responsible drinkers.
“The alcohol industry works hard to promote responsible drinking and supports the use of education and tailored solutions that target alcohol misuse. Raising the cost of drinks will not achieve this objective.”
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