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Alcohol Taxes Save Lives

By Isabel Thakur
Published in Financial Planning
May 04, 2023
1 min read
Alcohol Taxes Save Lives

Alcohol Taxes Save Lives: A Study Shows

The negative consequences of alcohol abuse are well-documented and widely understood. But according to a new study, taxes on alcohol may play a critical role in reducing deaths and other adverse outcomes associated with excessive consumption. The research, conducted jointly by the Canadian Institute for Substance Use Research and the University of Victoria, suggests that individuals are less likely to participate in binge drinking when the cost of alcohol is higher due to its taxation. As a result, there are fewer instances of the factors that can contribute to alcohol-related fatalities, such as impaired driving and domestic violence.

The study considers the impact of alcohol taxes in Canada, where the average price of a 24-pack of beer varies considerably by location. It found that a 10% increase in the taxation of alcohol resulted in a 9% drop in lethal motor vehicle accidents and a 32% decrease in deaths due to alcoholic liver disease. Researchers also estimated that an additional 1,000 lives would be saved annually in Canada if the taxation of alcohol was raised by 10%.

For many people, the idea of increased taxation is not a welcome one. However, the findings of this study demonstrate that this may be an effective way to reduce many of the public health issues that come along with excessive alcohol consumption. Moreover, similar policies have been implemented globally, such as those in Scotland, which increased the minimum price of alcohol units in May 2018.

Overall, this study highlights the importance of considering novel strategies when it comes to addressing public health issues. As we become more aware of the negative consequences of alcohol and other substances, it is incumbent upon us to try new approaches in order to reduce harm and save lives.


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Isabel Thakur

Isabel Thakur

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