Alcohol excise duty policy in Poland in the 21st century (original) (raw)
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Journal of Health Inequalities, 2022
Over the last 20 years we can observe a divergence in health policies with respect to tobacco and alcohol that has led to significant health consequences. Poland experienced a significant increase in alcohol consumption accompanied by negative health and social consequences while, on the other hand, tobacco consumption went significantly down. Excise duty is one of the most important drivers for that. Alcohol excise policy was very passive, which resulted in a huge increase in the economic affordability of alcohol. Between 1999 and 2021 the number of bottles of vodka the disposable income could buy went up by 176%. At the same time, the tobacco tax policy was active so that the economic affordability of cigarettes did not change at all. This article presents the data on taxes, affordability and tax revenues and tries to explain this divergence. Three perspectives (health, financial and political) are sketched to show the predominant incentives for the players.
Policy implications of alcohol and tobacco demand in Poland
Journal of Policy Modeling, 1992
Demand models for alcohol and tobacco have been estimated from anncal data providing point elasticity estimates. The results indicate that vodka and tobacco consumption are price-inelastic. The importance of revenues from alcc ~1 and tobacco to the government budget was emphasized because of a chronic budget deficit. The results suggest that revenue from tobacco sales would increase following cigarette price increases, However, the long-run s&.&,. "-c*m should lead to increased economic activity that lowers the importance of alcohol and tobacco sales and achieve 8 socially desired decrease in consumption of alcohol and tobacco. 'An overview of alcohol-related public order issues, traffic accidents, and death was provided by J. Morawski, "Alcohol Related Problems in Poland, 19504981," in Consu.pences of Drrnkiq,
2016
Alcohol consumption levels, as well as mortality and morbidity resulting from alcohol misuse, are at unprecedented levels in Poland. One of the most prominent factors very likely influencing this surge is the generally affordable prices of alcohol products. In 2015, Polish consumers could buy roughly twice as much beer, wine, and spirits with their disposable income compared to 2001. This increase in alcohol products affordability was one of the most pronounced among all high-income countries. One way to reverse these trends in affordability is through alcohol taxation. Cigarette taxes can serve as an example of a successful use of fiscal policy to reduce product affordability and advance public health goals. Significant cigarette tax increase resulted in higher cigarette prices and lower cigarette affordability. In Poland, from 2007 to 2015, significant declines in smoking rates and decreases in lung cancer rates were noted. Positive experiences with tobacco taxation should serve as guiding examples for governments to successfully utilise similar excise tax policy approaches in the control of alcohol-related diseases.
Revenue-Raising Potential of Alcohol and Tobacco Excise Duties in Germany and Poland
Journal of Economics and Public Finance, 2017
Accumulation of funds to cover government spending is the primary purpose of taxation. According to multiple authors, excise duties are classified as taxes with the highest revenue-raising potential. In the OECD member states, excise duties constitute a considerable source of state revenue. They account on average for 7.6% of total taxation. The European Union member states apply a harmonized structure for excise duties on selected products. They include, above all, alcoholic beverages and tobacco products. The average share of alcohol and tobacco taxation in GDP and total taxation for EU-28 in 2014 equaled, respectively, 0.8% and 2.2%. Although taxes on alcohol and tobacco are in no small extent harmonized, their design may sill vary between member states and strongly affect their collection efficiency. The primary purpose of this article is to compare excise duties imposed on alcohol and tobacco in Germany and Poland. The article is divided into three parts. The first addresses th...
Framing the policy debate over spirits excise tax in Poland
2016
Industry lobbying remains an obstacle to effective health-oriented alcohol policy. In 2013, an increase in excise tax on spirits was announced by the Polish government. This article presents a qualitative analysis of the public debate that ensued on the potential economic, health and social effects of the policy. It focuses on how competing groups, including industry actors, framed their position and sought to dominate the debate. Online archives of five Polish national newspapers, two spirits trade associations, and parliamentary and ministerial archives were searched. A thematic content analysis of the identified sources was conducted. The overall findings were compared with existing research on the framing of the Minimum Unit Pricing (MUP) debate in the UK. A total of 155 sources were analysed. Two main frames were identified: health, and economic The spirits industry successfully promoted the economic frame in their own publications and in the media. The debate was dominated by arguments about potential growth of the grey market and losses in tax revenue that might result from the excise tax increase. The framing of the debate in Poland differed from the framing of the MUP debate in the United Kingdom. The Polish public health community was unsuccessful in making health considerations a significant element of the alcohol policy debate. The strategies pursued by UK health advocates offer lessons for how to make a more substantial impact on media coverage and promote health-oriented legislation.
Impact of Changes in Excise Tax Rate for Strong Alcohol on Consumption and State Revenues in Latvia
Zenodo (CERN European Organization for Nuclear Research), 2012
State tax revenues in most countries started to decrease during the recession. Government of Latvia decided to compensate the decline by increasing rates of several taxes including excise tax on strong alcohol. The total increase in 2009 constituted 42% and the rate increased from 896€ to 1 266€ for 100l of absolute alcohol. Since then this has had a negative impact on consumption volumes and the split between legal and illegal market. The legal alcohol sales decreased by almost 50% (by volume), consequentially having negative effect on the State revenues from VAT and excise tax. Estimated results for 2010 are indicating 54 million € decrease in VAT, excise tax and other taxes versus 2008 (excise tax-19 million €, VAT-30 million €, other taxes-5 million €). The paper aims to analyze impact of the increase in excise tax on consumption patterns, State revenues and competitiveness of the local companies to draw up proposals for the state authorities regarding more effective tax policies. The analysis reveals a relationship between excise tax rate, illegal alcohol market and State revenues. The results can be used to improve excise tax system and effectiveness in Latvia.
An Analysis Of Social Campaigns Aimed At Reducing Alcohol Consumption: The Case Of Poland
Equilibrium 2012, Volume 7, Issue 4, pp. 117-136.
"Poland is currently grappling with a challenging situation: as salaries are increasing and more consumers afford to purchase alcohol, alcoholic consumption in Poland is among the highest in the European Union. Specifically, the market for vodka alone currently stands at 347million,andbeerat347 million, and beer at 347million,andbeerat465.2 million (www.money.pl, 2011). In response to these developments, the Polish government has levied high taxes on alcohol consumption and enacted some of the most stringent advertising laws for alcoholic products in the European Union. It also launched nine national advertising campaigns and a local campaign in the West-Pomeranian region and increased the excise tax on alcohol. The current study attempts to shed light on the campaigns and to offer insights into the different themes that the campaigns use to persuade consumers to limit their alcohol consumption and to act responsibly when consuming alcohol and to offer actionable solutions to change the alcohol-related consumption behavior in Poland through warning labels, health education, and other attempts at demarketing alcohol consumption. Also alternative venues that might lead to a change in the alcohol-related consumption behavior for Polish consumers, which may include instituting warning labels and other counteradvertising to educate the public with regard to alcohol-related risks, and thus curb the overall alcohol consumption and related negative outcomes for the Polish consumers, were examined. "
The Consumption of Alcoholic Beverages Can Be Reduced by Fiscal Means? Study on the Case of Romania
2021
World Health Organization gives great importance to excessive alcohol consumption among the population and its negative effects. It proposes a set of measures to reduce alcohol consumption and its harmful effects. The objective of our study was to estimate the effects of excise tax on alcohol in Romania, from two perspectives. On the one hand, we analyze the effects of alcohol excise on the consumption of alcoholic beverages among the Romanian population. We also consider the relationship between alcohol consumption and the incidence of diseases and deaths caused by it. On the other hand, we analyze the effects of the excise tax on alcohol on the state budget, through the revenues from the sales of alcohol. For achieving the main purpose of the paper, we analyze secondary data using both graphical and statistical methods. The statistical methods imply testing correlation between variables and also a regression model. The obtained results highlight the fact that the excise taxes on a...
Alcohol Consumption and Its Adverse Effects in Poland in Years 1950–2005
Economics Research International, 2011
This study examines changes in alcohol consumption and its adverse effects in Poland from 1950 to 2005. First, we estimate the total alcohol demand function and test Becker and Murphy's (1988) rational addiction model. Next, we explore substitution effects between beer, wine, and spirits and report income and own-and cross-price elasticities of demand for beer, wine, and spirits. Finally, we examine some adverse effects of alcohol consumption: traffic accidents, suicide rates, and vandalism rates. In particular, the effect of lowering the blood alcohol level limit (BAC) on traffic accidents is estimated.