Discussion on Alcopop Taxes
Case Study of Australian Alcopop Taxes
Table of Contents
1.0 Executive summary 2
Introduction 2
2.0 Analysis of the case 3 2.1 Definition of Alcopop 3 2.2 Evaluation of the case 3
3. 0 Relative economic theory 5 3.1 supply-demand theory 5 3.2 Theories of Elasticity and government intervention 5
4.0 Alternative actions and solutions 6 4.1 Causes of teenagers’ drinking 7 4.2 Solutions and actions 7
5. 0 Conclusion 8
1.0 Executive summary
Alcopop refers to alcoholic beverages that are popular with young people. It is widely taken among underage drinkers. In order to cut potential danger caused by alcopop and to raise revenue, recently Australian government has promoted alcopop tax.
The main purpose of the article is to set light on and tackle the problem of alcopop tax and its effects. It is apparent that government’s move will affect aspects of society and may also have some flaws. Through the analysis of alcopop tax and relating it to economic theories, this article comes to the alternative actions and solutions to the potential problem caused by the government activity.
Research is carried out in the form of group work and it also contains a group discussion about its effects.
Introduction
One of the most popular alcoholic beverages among young people in Australia is alcopop. Recently the Australian government has increased the tax for Alcopops, soft drinks mixed with alcohol. As a result, the government is expected to gain $2 billion in tax revenue, whilst leaving the problem unsolved （Christian, 2008）. Meanwhile, teenagers are switching to harder liquor; spirits and beers which are cheaper and get people drunk faster. The report looks deep into the recent topic of Alcopop Tax and its effect on its key stakeholders mainly being underage drinkers and the Australian government. By the end of this article, there will be a simple and effective solution to resolve the issue of underage binge drinking as an alternative to raising
Table of Contents
1.0 Executive summary 2
Introduction 2
2.0 Analysis of the case 3 2.1 Definition of Alcopop 3 2.2 Evaluation of the case 3
3. 0 Relative economic theory 5 3.1 supply-demand theory 5 3.2 Theories of Elasticity and government intervention 5
4.0 Alternative actions and solutions 6 4.1 Causes of teenagers’ drinking 7 4.2 Solutions and actions 7
5. 0 Conclusion 8
1.0 Executive summary
Alcopop refers to alcoholic beverages that are popular with young people. It is widely taken among underage drinkers. In order to cut potential danger caused by alcopop and to raise revenue, recently Australian government has promoted alcopop tax.
The main purpose of the article is to set light on and tackle the problem of alcopop tax and its effects. It is apparent that government’s move will affect aspects of society and may also have some flaws. Through the analysis of alcopop tax and relating it to economic theories, this article comes to the alternative actions and solutions to the potential problem caused by the government activity.
Research is carried out in the form of group work and it also contains a group discussion about its effects.
Introduction
One of the most popular alcoholic beverages among young people in Australia is alcopop. Recently the Australian government has increased the tax for Alcopops, soft drinks mixed with alcohol. As a result, the government is expected to gain $2 billion in tax revenue, whilst leaving the problem unsolved （Christian, 2008）. Meanwhile, teenagers are switching to harder liquor; spirits and beers which are cheaper and get people drunk faster. The report looks deep into the recent topic of Alcopop Tax and its effect on its key stakeholders mainly being underage drinkers and the Australian government. By the end of this article, there will be a simple and effective solution to resolve the issue of underage binge drinking as an alternative to raising
References: ABC News. 2008, Govt hikes ‘ alcopops’ tax. [Online] (Updated: 27 Apr, 2008) Available at: http://www.abc.net.au/news/stories/2008/04/27/2228252.htm [Accessed 2 September 2011] Christian, K., 2008, Alcopop tax jacks up sales of spirits, The Australian Gillespie, A., 2007. Foundations of Economics. Oxford: Oxford University Press. Gordon, J. and Harrison, D., 2008, Booze blitz: alcopop tax lifted by 70%. [Online] (Updated: 27 Apr, 2008) Available at: Harvey, E., 2008. Alcopop tax gets a mixed reception. [Online] (Updated Apr 29. 2008) Available at: http://www.smh.com.au/articles/2008/04/28/1209234761907.html [Accessed 2 September 2011] Nicola Berkovic, 2008, Blame laid over alcopop tax hike, The Australian [Online] (Updated 28 April, 2008)