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The introduction of a minimum price per unit of alcohol will push up the cost to consumers of alcohol more, not only the cheapest drinks are strong, according to the researchers.
The Institute for Fiscal Studies (IFS) has said that a floor of 50p per unit would increase the cost of the 70% of alcohol purchased in stores.
Tells me that there is a “strong case” for reform to alcohol duties, instead.
The Scottish government is due to bring in a minimum price for alcohol.
It is consulting on its preferred rate of 50p per unit.
Such a policy, the Welsh National Assembly.
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IFS seen what the impact on prices, if a mandatory minimum price of 50 pence per unit of alcohol have been introduced, which means that drinks, which currently cost less than it would have had to go up in price.
Found the average price increase would be around 35%, but at a low cost lager would increase by 44%, while most of the ciders would cost 90% more.
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About 85% of the camps, and 80% of the cider (as measured with the units of alcohol) are priced less than 50p per unit.
The IFS said the majority of the wines, liqueur wines and spirits also cost less than 50 pence for unit see their prices go up.
For example, a bottle of sherry contains 17.5 units of alcohol sold for Â£7.15 from a supermarket should be sold for Â£8.75 if a minimum price of 50 pence per unit was introduced.
Twenty cans of cider, containing 44 units of alcohol, which is currently available for Â£11, a double in the price of Â£22.
The researchers concluded that a minimum price of 50p would have a financial impact on heavy drinkers who tend to buy the cheapest and strongest alcohol. But it would also affect a large number of moderate drinkers.’Dampen the competition”
However, the IFS has said “may be the best solution for reform duties and do not have a minimum price to all”.
He said that minimum unit pricing had a “substantial disadvantage” because the policy was “likely to dampen competition in the retail market, with a consequent increase in profits for the alcohol industry.
“On the contrary, the reform of the alcohol functions that act to increase the price of the products is strong, as well as the cider, it is likely to increase tax revenues,” he added.
Anomalies in the current UK alcohol duty system is “chaotic”, he said.The beer and cider
At the moment, for example, the rules of the EU means wine and cider must be taxed per liter, with the result that they are taxed less per unit of alcohol than stronger drinks.
Separately, the tax on a litre of 7.5%, the beer is three times that on a litre of 7.5 % cider.
“A reasonable reform that will substantially improve the system of alcohol duties would result in taxing directly the alcohol in the wine and cider (a move that leaves the European Union, presumably, legally feasible) and the increase in the tax on cider to bring it in line with that charged on beer,” he said.
Any change to the system of the alcohol duty would be under the control of the government of Westminster.