Working Paper: CEPR ID: DP14388
Authors: Kym Anderson
Abstract: Rates of alcohol taxation, and the types of tax instruments used, vary enormously between countries and have tended to rise in recent times. Within each country they also vary between beverages, and often between qualities and styles of each beverage. This paper computes consumer tax equivalents in US dollars per litre of alcohol and as percentages of wholesale prices of representative beverages for 42 high-and middle-income countries. That allows comparisons across countries of taxes not just for each product on its own but also relative to those for other alcoholic beverages. The wide dispersion of rates and differences in tax instruments across countries and products suggest differing strengths of health and welfare lobbyists and industry groups in influencing government decision-making.
Keywords: consumer tax equivalents; excise taxes; alcohol; import tariffs
JEL Codes: D12; D62; E62; H23; I18; P46
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Higher alcohol taxation (H29) | Reduction in negative externalities related to alcohol use (H23) |
| Higher alcohol taxation (H29) | Improved social welfare (D69) |
| Influence of health lobbyists and industry groups (H51) | Government decisions regarding alcohol taxation (H29) |