New Tax Will Fund Alcohol Treatment and Rehab in UK

January 22, 2015 Taxation in UK

LONDON – A proposed new tax on the sale of alcohol could help fund treatment and care for the 1.6 million UK citizens currently dependent on alcohol.

The rising number of alcohol related admissions to hospitals in the UK has prompted the non-government organization Center for Social Justice to call for a new “treatment tax” to be levied on the sale of alcohol, detailing the proposal in a statement issued on January 21st.

According to the details of the proposal put forward by the Center of Social Justice, the sale of alcohol at shops and supermarkets should be subject to a tax of GBP 0.01 per standard unit of alcohol contained in the drink.

If the tax is enacted, a bottle of wine will increase in price by GBP 0.1, with a 4-pack of beer rising by approximately the same amount, resulting in an increase to tax collections of as much as GBP 1.1 billion over the next five years.

Any extra funds raised from the tax are to be used to fund rehabilitation programs for alcohol and drug users, helping reducing the harmful effects and costs of substance abuse.

It is currently estimated that alcohol abuse costs the UK as much as GBP 21 billon per year, with 1.6 million people in the country currently dependent on alcohol.

Photo By: Simon Cocks