Alcohol Tax Could Help Rehabilitation

August 18, 2014 Taxation in UK

LONDON – Drug and alcohol addicts in the UK could have access to significantly more recovery tools, if the government introduced a new tax on the sale of alcohol.

Alcohol sales in the UK should be subject to a new tax of up to GBP 0.02 per unit of alcohol, to be used to fund addiction rehabilitation centres, according to information in a new report by the UK based think tank the Centre for Social Justice.

The experts of the Centre for Social Justice suggested that the new tax could be launched in 2015, and be charged at a rate of GBP 0.005 per unit of alcohol, to be raised to GBP 0.01 in 2018, and GBP 0.015 in 2021, capping at GBP 0.02 in 2024.

It is expected that such a tax could raise as much as GBP 155 million per year between 2015 and 2017, GBP 290 million per year between 2018 and 2020, rising to GBP 410 million per year between 2021 and 2023, and GBP 520 million each year afterwards.

The revenues collected from the tax would be used exclusively to fund abstinence-based rehabilitation centres, to provide treatment for at least 58 000 addicts per year by 2024.

The Centre of Social Justice currently estimates that 1.6 million people in the UK are currently dependent on alcohol.

Photo By: Simon Cocks