Wednesday, May 07, 2008

Do smoke and drink tax rises work?

By Nigel Pankhurst
BBC News

UK Chancellor Alistair Darling announced big increases in the tax on alcohol in his first Budget as the government looks to tackle problems associated with a binge-drinking culture.

The increase in the tax on alcohol was the biggest since the 1970s. The increase, 6% above inflation, will put 4p on a pint of beer, 14p on a bottle of wine and 55p on spirits.

Do moves to increase tax on items such as alcohol and cigarettes have any effect, or will people carry on smoking and drinking regardless?

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