According to the health minister, when in the year 2000 the previous government initiated a tax decrease on these products, it led to a drastic increase in the consumption of these products. Official data suggests that the consumption increased form 14 percent to around 60 percent with young girls. Moreover, an even more alarming situation for the government is that the consumption of ready to alcohol drinks is increasing within teenagers and data suggests that girls are even more responsive towards this trend in comparison with boys. The government hopes to reverse this trend with this price increase since the segment is price sensitive plus the government also promises to spend the tax revenue in preventive health schemes.
The above-mentioned case in many ways relates to different concepts of economics. The first one can be the very basic relation of price and demand. Economics at its initial level teaches that price charged for any product and quantity demanded of that product enjoy a negative or inverse relationship. If price charged for a product increases than the quantity demand decreases and vice versa1. This case shows a similar kind of a situation. According to the health minister when in year 2000, the previous government decreased the taxes, it led to the decrease in the price charged for it to consumers and this decrease in price led to a drastic increase in the quantity demanded for ready to drink alcohol drinks. Official data suggests that it rose from 14 percent to 60 percent within the segment of young girls. The price demand relationship explains the idea and phenomenon behind this happening.
Another important concept of economics applied here is the price elasticity of demand. Sensitivity of quantity demanded to the changes in the price charged is the price elasticity of demand. In order words, it can also be said that it refers to the responsiveness of demand in relation to the changes in price.
The Federal Minster for health Nicola Roxon announces an increase in the prices of ready to drink alcohol by doubling the tax rate of the product. The Federal Minster…
The world has witnessed the failure of the planned economy with the fall of the former USSR. However, certain features of planned economy are still visible in the form of socio-political interventions that take place in the mixed economy capitalism. From the perspective of the American capitalist democracy, such policy interventions by the government are dangerous.
The introduction of the new Licensing Act may be considered partially responsible for this decline. The consumption level of alcohol in the UK as of the year 2006 is shown below with a graphical representation of the data.
People in UK still consume less alcohol than most of their counterparts in the other Western European countries.
One in five of all deaths every year in the United States have been credited to smoking, killing more than AIDS, suicide, alcohol, car accidents, homicide, and illegal drugs combined (American Cancer Society, 2004). Bishop and Yoo (1985) declared that a surgeon's general report in 1964, regarding the knowledge of severe health affect of smoking, showed a diminution in cigarette sales.
In 1988, The U.S Surgeon General's report concluded that "Cigarettes and other forms of tobacco are addicting . . . and nicotine is the drug in tobacco that causes addiction. The epidemic of addiction to nicotine among people has enormous consequences for public health.
This paper will draw on a variety of different sources to help strengthen arguments. Lastly, it is the case that this paper will be writing in the context of Great Britain however it may be the case that this paper will draw on examples from other nations in order to highlight the relative strengths and weakness of said taxation methods.
According to the author of the text, the amount of money that is circularized people to people by the country is the money that is collected in the shape of income tax, which is paid by the citizens. It is also mentioned that the idea was of Mr. Augustus Ceaser to apply tax system all around the world.
In the last few decades the suburbs of the city of Dallas has seen a drastic growth in population and economy. As a result, city governments have grown and have taken more responsibility in developing and maintaining the cities. Places like Frisco, Plano and McKinney are
Currently many forms are making use of some remarkable vehicles to reduce taxation on their incomes. For example, whole life insurance is one of those vehicles which contract many tax benefits, i.e. if one doesn’t withdraw interest or gains, and then no
Alcoholism and alcohol abuse have effects on both the alcoholics and the wider society. This paper seeks to identify the effects of alcohol, alcohol control measures with their effects and limitations.
Despite alcohol contributing to economy
5 pages (1250 words)Essay
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Essay on topic Increasing taxes of alcohol for FREE!