As a regular pub-goer, I value local boozers. I don’t consider myself an alcoholic, but I also have no objection to the occasional binge. So it concerns me when I hear that minimum pricing for alcohol is going to unfairly hit pub finances. You see, supermarkets pay no V.A.T. on food but pubs have to pay 20%! Not sure what the logic is in that other than perhaps governments have a vendetta against pubs. So supermarkets will compensate for any alcohol tax rises (e.g. minimum prices per unit) by cross-subsidising, i.e. dropping prices on food and soft drinks. This means that an even greater disparity will be created between supermarket prices for alcohol and corresponding pub prices. As much as governments want to reduce alcohol-related crime, disorder and health problems (and I do appreciate the well-meaning intentions of alcohol tax), I can’t help thinking that minimum pricing won’t affect supermarkets nearly as much as intended, meaning that people will probably stock up on booze at home, then get pissed before leaving the house for a night out where they may have less to drink at the pub but still be just as disorderly as before. So pubs will suffer and there will be little to show for it. If alcohol must be so heavily taxed, governments have to ensure that supermarkets do not cross-subsidise; that way booze prices will be competitive wherever you buy from.
Tuesday, 25 September 2012
Pints Are Better In Pubs
Labels:
alcohol,
cross-subsidising,
minimum pricing,
Pubs,
supermarkets,
tax.,
unit price,
V.A.T.
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