Review of Western Australian State Taxes 1994 - Chapter Three - Alcohol Taxation

Abstract

This Chapter focuses on the taxation of alcohol sales at State level, in the form of a Business Franchise Licence Fee, which is levied on alcohol wholesalers and retailers. The Chapter analyses the Liquor Licensing Act 1988 (WA), which sets out the manner in which the tax is imposed, and also addresses policy issues related to alcohol. The Chapter discusses alcohol taxation with respect to equity, efficiency and simplicity, as well as the social costs of excess alcohol consumption and the effectiveness of present methods of regulation, as provided by the Liquor Licensing Act. The Chapter concludes that taxation of alcohol alone is an ineffective means of reducing alcohol-related social problems. It recognises that the implementation of other measures will require additional governmental funding but suggests that taxation may be effective as a means of raising revenue, provided that some of the revenue raised is directed towards addressing the social costs of alcohol. It also includes the authors' reform proposals for the prevention of alcohol-related social problems.