Friday, May 30, 2008

Alcopop Tax Folly Redux

About a month ago, I predicted that the alcopop tax would simply lead to a substitution away from premixed drinks into other alcoholic beverages. Looks like I was right. This article in the Sydney Morning Herald cites a recent industry study, finding that while alcopop sales dropped 38% as a result of the tax, the sale of 700ml bottles of spirits rose by 21%. And the industry is speculating that when one factors in other alcoholic beverages, total alcohol sales may have actually risen in the past month!

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