U.K. Hopes Tax Hike on High-Alcohol Beer Discourages Problem Drinking

Beginning in late 2011, Britain will tax beers with higher alcohol content more heavily than weaker beers, Reuters reported Nov. 30.

New tax rates will apply to beers with more than 7.5 percent alcohol and beers with 2.8 percent or less. The tax plan is part of a broader government policy to address alcohol abuse.

“The government recognizes that in some areas taxation can have a role in helping to address the harms associated with problem drinking,” Justine Greenberg, minister of the Treasury, told parliament.

The British Beer and Pub Association supported the move. “We need a duty system that nudges consumers to choose lower-strength, pub-based drinks such as beer,” said Brigid Simmonds, the association's chief executive.

Some health advocates said that higher tax rates should apply to beers with more than 5 percent alcohol content, according to BBC.

Starting the higher tax rate at 7.5 percent “almost amounts to window dressing,” said Ian Gilmore, of the Royal College of Physicians. “It will go no way towards impacting on the amount people are drinking and the harm they are doing.”