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Western Australia to impose minimum price on alcohol?

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Western Australia to impose minimum price on alcohol?

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Link to negative externalities of consumption.

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With pressure continuing to mount on the state government, health minister Roger Cook has expressed his interest in introducing a minimum floor price for alcohol.

The Mandurah Mail recently reported a renewed push from the Western Australia Alcohol and Youth Action Coalition to implement the "important public health initiative" to reduce heavy drinking, particularly among young people.

Last week, Mandurah mayor Rhys Williams said he would also support a minimum floor price in the Peel region.

The idea of a minimum floor price was first flagged by Mr Cook in September 2017 to stop retailers selling discounted alcohol to binge drinkers.

The government has been very quiet since then.

But Mr Cook said it is still an important measure to consider in the effort to tackle alcohol abuse across the state.

"The introduction of a minimum price on alcohol in Western Australia remains of interest because of its potential to prevent alcohol-related harm and reduce pressure on our health system and the state government is keen for community discussion on this issue to continue," Mr Cook told the Mail.

"The minimum floor price was one of a number of recommendations to address alcohol harm emanating from the WA Preventive Health Summit held in February."

The intoxicating industry and its related harm is said to cost the WA community in excess of $3.1 billion a year.

But some of the effects are even more costly.

In 2015, there were 565 alcohol-attributable deaths in WA.

The WA Alcohol and Youth Action Coalition's report included a number of alarming statistics about the devastation caused by excessive liquor consumption.

In 2012 in WA, alcohol was involved in 18 per cent of all injury fatalities, 12 per cent of injury hospitalisations and 32 per cent of injury-related emergency department presentations.

In 2012-2013, WA males aged 20-29 years were hospitalised at a rate more than triple the national average. In the same year, 33 people were hospitalised each week due to alcohol-attributable assaults.

More recently in 2017, 15 ambulances per day were called out for the primary reason of alcohol intoxication.

Mr Cook said something had to be done to put an end to the negative and often devastating outcomes of alcohol abuse.

"Alcohol use is responsible for a range of health issues, including but not limited to: alcohol-related cancers, liver disease, mental ill-health, digestive problems and stroke," he said.

"In 2014, one person was hospitalised in Western Australia every 27 minutes for an alcohol attributable condition.

"There is also the social cost of alcohol which includes breaches of child safety, traffic crashes, crime, domestic violence and family breakdown.

"Reducing this harm is an important priority because it is preventable harm that affects drinkers as well as the broader community.

"If we can reduce risky drinking, we can create a healthier and safer community for everyone."

Australian Medical Association Western Australia (AMA WA) president Dr Omar Khorshid echoed the minister's comments.

"We know the harm that really cheap grog has on our society," he said.

"Excessive alcohol consumption is the source of significant health, social and economic harms, particularly among young Australians.

"There are more alcohol-related emergency department presentations in WA than the rest of Australia, something that our doctors and nurses see every day."

Dr Khorshid said it was time for the state government to prioritise the "health, welfare and safety" of West Australians.

"This will have no impact on the vast majority of people who drink socially, but it will make a difference to the heaviest drinkers and teenagers - those who are most responsive to changes in price and have the greatest harms associated with binge drinking," he said.

"Introducing a minimum price on alcohol is an important step which will result in fewer cases of alcohol-fuelled violence and crime, hospitalisations, and tragic and avoidable alcohol-related deaths.

"The time for action is now."

Mr Cook said the government was already taking steps towards the possible implementation of the floor price.

"The Mental Health Commission is closely monitoring the Northern Territory government's introduction of a minimum price on alcohol which commenced in October," he said.

"Sheffield University in the UK has also been engaged by the Mental Health Commission to provide modelling specific to Western Australia about the potential health and safety impacts of various minimum prices."

To read the full report from the WA Alcohol and Youth Action Coalition, visit the website.

The Mandurah Mail team will continue to develop this controversial issue with further investigation in the upcoming weeks.
What are your thoughts on implementing a minimum floor price for alcohol in WA? To share your opinion get in touch with the Mandurah Mail team via editor.mandurahmail@fairfaxmedia.com.

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Booze costs us billions: Health Minister keen on minimum floor price discussion to continue

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With pressure continuing to mount on the state government, health minister Roger Cook has expressed his interest in introducing a minimum floor price for alcohol. The Mandurah Mail recently reported a renewed push from the Western Australia Alcohol and Youth Action Coalition to implement the "important public health initiative" to reduce heavy drinking, particularly among young people.

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Possible downsides to the idea?

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The Peel Chamber of Commerce and Industry (PCCI) are calling for the state government to consider alternative solutions to the minimum floor price to tackle alcohol-related harm across Western Australia.

The Mandurah Mail has recently reported a renewed push from the WA Alcohol and Youth Action Coalition to implement the "important public health initiative" to reduce heavy drinking across the state.

A floor price would set a minimum dollar amount per standard drink below which alcohol cannot be sold and would prevent alcohol retailers from selling bargain-basement booze.

PCCI general manager Andrew McKerrell said forcing retailers throughout the state to implement the initiative could have a damaging effect on the local economy.

" I don't agree in removing a business' ability to operate independently in a competitive market and specifically regulate against their ability to price accordingly to move unwanted stock," he said.

I don't agree in removing a business' ability to operate independently in a competitive market.
Andrew McKerrell

And the business leader said on-premise venues would be hit even harder by the consequences of such a measure.

"This can also be applied to on-premise venues like clubs, bars and restaurants," Mr McKerrell said.

"However the effect would be compounded and have a much greater impact where very little margin is made on beverages already once exorbitant operating costs are taken into account."

On top of the economic impact, Mr McKerrell had further concerns about implementing a minimum floor price for alcohol across the state.

"Implementing a minimum price floor would further encourage those in our society who use alcohol as a drug, to consume liquor at home and 'load up' before venturing out into the community," he said.

"This would drastically raise the chances of anti-social behaviour due to increased consumption or worse, turning to alternate illicit substances."

This would result in huge negative impacts on a business' turn-over, profitability and ultimately, financial viability.
Andrew McKerrell

He also doesn't think the initiative will address "the core issue our community is facing".

"A firm holistic approach in addressing our society's culture and taboos centred around alcohol consumption is desperately needed, founded by scientific and global social research, and backed by a strong, persistent inter-generational educational program," he said.

"Due to lessons learned from the prohibition period of the 1920s and 30s, I unfortunately cannot see the implementation of a minimum price policy as an effective means of addressing what appears by all accounts to be a social and health issue, and not one of economics.

"I see a policy such as this as anti-competitive and effectively removing business' ability to operate in a highly competitive market.

"This would result in huge negative impacts on a business' turn-over, profitability and ultimately, financial viability."

Australian Hotels Association (AHA) WA chief executive officer Bradley Woods did not echo the opinion of the PCCI and instead said they would be willing to implement the measure.

"The AHA is open to considering a minimum price on alcohol because we recognise that there are complex social issues underlying alcohol abuse," Mr Woods said.

"But there is no single solution."

Mr Woods did acknowledge however that it might just act as a Band-Aid in fixing the alcohol abuse problem.

"Broad-based consumption measures like a minimum price will make cheap wines and beer less accessible however it is important to note it will not target all harmful drinkers as they are not all responsive to price rises."

There is no single solution.
Bradley Woods

"Our members will continue to work with the government on targeted solutions to address alcohol abuse.

"This includes adhering to government bans, self-imposed alcohol restrictions, utilising powers that allow police and licensees to penalise and prohibit anti-social drinkers and the development of a Banned Drinkers Register."

A visiting UK professor, and expert in the field of minimum floor price policy, has suggested on-premise liquor stores would in fact benefit from the measure.

Speaking at a public seminar in Bentley on November 15, University of Sheffield's Dr John Holmes explained how he believed retailers could make money from the initiative.

"Because minimum pricing is not a tax, off-trade retailers - those who actually sell alcohol at low prices, actually retain the extra money from the alcohol sold at higher prices," he said.

"So we will see quite a big windfall for off-trade retailers."

Dr Holmes explained that during a survey in the UK, it was revealed many sectors of the industry in fact supported the initiative for a range of different reasons.

"The pub sector supported it because it was struggling and hoped it would stop people drinking at home and bring people back to the pubs," he said.

"Some independent stores supported it because they were concerned the supermarkets were able to sell at such a low price already."

The Mandurah Mail team will continue to develop this controversial issue with further investigation in the upcoming weeks.
What are your thoughts on implementing a minimum floor price for alcohol in WA? To share your opinion get in touch with the Mandurah Mail team via editor.mandurahmail@fairfaxmedia.com.

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Minimum price not good for retailers: PCCI calls for other options to tackle alcohol abuse

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The Peel Chamber of Commerce and Industry (PCCI) are calling for the state government to consider alternative solutions to the minimum floor price to tackle alcohol-related harm across Western Australia. The Mandurah Mail has recently reported a renewed push from the WA Alcohol and Youth Action Coalition to implement the "important public health initiative" to reduce heavy drinking across the state.

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India caps the price of 51 essential medicines

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India caps the price of 51 essential medicines

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ceiling prices of essential formulations

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NPPA caps prices of 51 essential medicines

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The National Pharmaceutical Pricing Authority has capped the prices of 51 essential formulations, including those used for the treatment of cancer, pain, heart conditions and skin problems. The prices

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PTI Last Updated: November 28, 2018 | 09:03 IST

The Delhi government on Tuesday came out with its draft electric vehicles policy, targeting 25 per cent of all new vehicle registrations to be electric by 2023 through the subsidy for such autos, rickshaws and two-wheelers among others.

It also recommends strengthening infrastructure to provide battery charging access within 3 km range from anywhere in Delhi while additional fees on non-electric vehicles will fund the bulk of corpus created to incentivise the adoption of electric cars.

The draft policy posted on Transport department website has been put in the public domain for people to file their objections and suggestions.

Delhi Transport Minister Kailash Gahlot said around 30 per cent of particulate pollution in winter is caused by vehicles in the city and adopting environmentally friendly vehicles will improve the air quality.

"We have drafted a comprehensive policy for Delhi with an aim to make the city a leader in the adoption of electric vehicles. We believe that going electric and breathing better are two sides of the same coin, he said in a statement.

The draft policy acknowledges that a new approach is required to kick-start EV adoption in Delhi and seeks to put in place several measures that address key hurdles, besides targeting 25 per cent of all new vehicle registrations to be electric by 2023.

Endeavouring to battle high levels of air pollution in the city, the government has appointed a consultant to procure 1000 e-buses. Currently, the trial of two such buses is being carried out on different routes.

The policy provides for up to Rs 22,000 subsidy on purchase of E-two wheelers to ensure the cost of commuting comes close to petrol-driven two-wheelers. Electric two-wheeler taxis will be allowed to provide last mile connectivity.

For e-cabs, it suggests a full waiver in registration and cashback of Rs 10 to commuters.

The policy proposes an open permit system for e-autos in Delhi with a subsidy up to Rs 12,500 and five per cent interest subvention to promote these vehicles. It also recommends cashback of Rs 10 to commuters using e-autos.

For e-rickshaws, the policy recommends subsidy up to Rs 20,000 and five per cent interest subvention.

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government electrical vehicle subsidy under fame ii

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Delhi's e-vehicle push: Draft policy proposes subsidy on electric two wheelers, autos, rickshaws

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PTI Last Updated: November 28, 2018 | 09:03 IST The Delhi government on Tuesday came out with its draft electric vehicles policy, targeting 25 per cent of all new vehicle registrations to be electric by 2023 through the subsidy for such autos, rickshaws and two-wheelers among others.

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Removing as opposed to offering a subsidy.

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Sources say Saudi Arabia is considering a plan to phase out subsidies for gasoline and jet fuel in November at the latest

(MANAN VATSYAYANA/AFP/Getty Images)

Saudi Arabia is considering a plan to phase out subsidies for gasoline and jet fuel in November at the latest, as the world's biggest oil exporter pushes a program to curtail spending after a global slump in prices.

The government would boost gasoline to parity with varying international prices under the plan, according to a person with knowledge of the matter. At current levels, this could result in a hike of about 80 percent for octane-91 grade gasoline to about 1.35 riyals per litre (0.36 cents), the person said on condition of anonymity. The government plans to delay increases in other energy prices until early 2018, the person said.

Authorities are expected to make a final decision on the plan in September or October, the person said. The Saudi finance, economy and energy ministries didn't immediately respond to requests for comment.

Energy-subsidy reform is a key part of Saudi Arabia's plan to overhaul the economy, along with the sale of stakes in state-owned entities, including the world's biggest crude exporter known as Saudi Aramco. The kingdom raised fuel prices in December 2015 and announced plans for further increases. Authorities have also announced plans for a cash transfer program that would start before further subsidy cuts to help Saudis cope with the impact as the economy struggles with the worst slowdown since the global financial crisis.

"It is important for the Saudi government to cut subsidies in order to ease pressures on budget deficit," Tariq Qaqish, managing director of the asset management division at Mena Corp Financial Services in Dubai, said by email. "Not only the transportation and logistics sectors will be affected significantly, any company that is involved in production and needs to transfer their end products to consumers will be affected."

The kingdom's benchmark Tadawul All Share Index climbed 0.3 percent at 12:57 a.m. in Riyadh on Monday. The transportation index fell 0.7 percent, the most in a month.

Removing energy subsidies is politically sensitive in the six-nation Gulf Cooperation Council, where many nationals have grown accustomed to generous state benefits and handouts. The slump in revenue from oil exports have left governments with few options as they grapple with rising budget deficits.

Saudi Arabia's budget gap soared to more than 15 percent of economic output in 2015 before authorities unveiled a plan to transform the economy and balance the budget by 2020.

The neighboring United Arab Emirates became the first country in the oil-rich region to remove subsidies on transport fuel when it began linking gasoline and diesel prices to global oil markets in August 2015.

Gasoline and jet fuel would undergo immediate, one-time increases under the Saudi plan, while the government would raise prices of other fuels gradually between 2018 and 2021, the person said.

The government may put a ceiling on increases in diesel and heavy fuel oil to limit any negative impact on the economy, as both fuels are used for power generation and industrial activities, the person said. Electricity rates would rise gradually as power providers passed on at least some of the increase in fuel prices, the person said.

Benchmark Brent crude has lost about 2 percent this year and was trading at $55.63 a barrel on Monday at 11:22 a.m. in London.

"The government is taking its first step in removing subsidies for some fuel," said John Sfakianakis, director of economics research at Gulf Research Center. "And over the long term, the economy will become a more efficient user of energy in general, and gasoline in particular."

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

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Saudi fuel subsidies could be phased out in November

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Sources say Saudi Arabia is considering a plan to phase out subsidies for gasoline and jet fuel in November at the latest (MANAN VATSYAYANA/AFP/Getty Images) Saudi Arabia is considering a plan to phase out subsidies for gasoline and jet fuel in November at the latest, as the world's biggest oil exporter pushes a program to curtail spending after a global slump in prices.

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Includes useful evaluation ideas with respect to indirect taxes.

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Taxes in the name of health not so healthy for personal freedoms

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Consumers are worse off because of the government's insatiable appetite to wring revenue from citizens, writes Jasson Urbach

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International: Seattle's new tax on sugary drinks

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International: Seattle's new tax on sugary drinks

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CLOSE

Attention Coke and Pepsi fans: Seattle's tax on sugary drinks takes effect on New Year's Day.

Joining a handful of other U.S. locales with similar levies, Seattle voters enacted a 1.75 cents-per-fluid-ounce tax on the distribution of sodas and other sweetened beverages such as sports drinks and energy drinks in June. That amounts to 21 cents tacked on to every 12-ounce can or bottle.

Distributors will be required to pay the tax, and they're expected to pass on at least some of the added costs to consumers.

The city tax exempts diet drinks and sweetened products from certified manufacturers with annual worldwide gross revenue of $2 million or less. Products from certified manufacturers with similar revenue of more than $2 million but less than $5 million will face paying a 1-cent-per-fluid ounce tax. .

More: Philadelphia becomes first major city to pass soda tax

4 cities vote to tax sugary drinks, soda

Soda tax goes flat in Chicago area's Cook County after clash over health, taxes, sales

Supporters argued the levy would reduce consumer consumption of sugary drinks that have little nutritional value and have been linked to obesity, diabetes, and other health problems in some studies.

Businesses and labor groups that opposed the tax argued it would hurt small businesses and cost jobs. Additionally, other critics said the tax would hit low-income consumers the most.

Follow USA TODAY Money and Tech online via Facebook

Opponents of the Cook County, Ill., soda tax are challenging it in court. (Photo: Getty Images)

Seattle is among a handful of municipalities nationwide that have voted in favor of soda taxes. Since Berkeley, Calif., enacted such a levy in 2015, seven other municipalities, including San Francisco and Philadelphia, have backed similar taxes, according to Real Food Media, an advocacy group that promotes "sustainability and equity along the food chain."

The Chicago area's Cook County enacted a similar soda tax earlier this year but scrapped it in October amid business opposition.
Contributing: Associated Press Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc
Read or Share this story: https://usat.ly/2CeT9xR

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Seattle's new tax on sugary drinks kicks in on New Year's Day

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CLOSE Attention Coke and Pepsi fans: Seattle's tax on sugary drinks takes effect on New Year's Day. Joining a handful of other U.S. locales with similar levies, Seattle voters enacted a 1.75 cents-per-fluid-ounce tax on the distribution of sodas and other sweetened beverages such as sports drinks and energy drinks in June.

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Local: New tax on cigarettes and energy drinks 

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Local: New tax on cigarettes and energy drinks 

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New tax doubles price of cigarettes, energy drinks in Saudi Arabia

JEDDAH: Prices of cigarettes and energy drinks have doubled with the implementation of an excise tax that became effective midnight Saturday in a measure unprecedented in the Kingdom.
The excise tax, commonly known as a "sin tax," is imposed on "unhealthy products" that are likely to cause health problems and eventually increase medical expenses paid by individuals or the government, according to the General Authority of Zakat and Tax (GAZT) official website.
"We've communicated with the business sector and have set up many workshops to introduce the selective tax both at the GAZT and the Chamber of Commerce," Mohannad Al-Madi, who handles public relations for the GAZT, told Arab News.
A few days prior to the implementation, some smokers struggled to find boxes of their usual cigarettes. Consumers attempted to stock up on cigarettes at their pre-tax price, while suppliers were trying to keep the products off the shelves until the prices rose.
"I went to several shops yesterday to buy the type of cigarettes I usually smoke. It was nowhere to be found," Abdulghafour Ahmed, a middle-aged man who started smoking when he was 18, told Arab News.
Soft drinks were being placed on an empty shelf at one of the main supermarkets in Jeddah that Arab News visited Sunday afternoon. "There was nothing here yesterday," the shelf stacker said, pointing at the shelf. "Yesterday, the price was normal. But today, a soft drink can is SR2.25 ($0.60)."
This price of a 355ml can of a soft drink matched that of another supermarket Arab News visited. The second supermarket had also kept the newly taxed drinks away from customers so they are sold 50 percent higher in price in the case of soft drinks, and double the price for energy drinks.
Consumers will now pay SR12 at one supermarket for a 250ml can of a popular taurine drink, which is priced at SR11.90 at another supermarket. Aside from tags of doubled priced energy drinks, a new sign has been posted on market shelves stating: "Energy drinks harmful to health." The full warning matches the text on beverage cans.
The warning, written in English and Arabic, reads: "This product does not have any health benefits. Consuming more than two cans a day may negatively affect your health." The warning mainly targets individuals under 16 years old, pregnant women, who are breastfeeding, people with heart conditions, individuals with high blood pressure or diabetes, people allergic to caffeine and athletes while exercising.
The tax authority urged producers and suppliers of taxable goods to register for the excise tax, the GAZT official website stated.
The statement read: "The GAZT has stated that every person who possesses excise tax goods should file a return for the transitional period starting Sunday (June 11) and pay accordingly within 45 days, to avoid being subject to legal penalties and fines."
The taxing body expects to lower consumption by people with limited income of the taxed products after the price hike.
Yet Faizan Haider, a Jeddah-based Pakistani national working at a travel agency, said he would rather cut down on his food purchases than quit smoking.
"I will spend less on fast food and other stuff, but cannot quit smoking," he told Arab News.
Haider, who has been in Saudi Arabia for 24 years, said that he was "disappointed" that the government has raised taxes on tobacco, "which is pointless."
Regular smoker and energy-drinks lover 25-year-old Salma Walid, said the move would not make her quit.
"It's an extra strain on the pocket, but it's a habit that I can't just quit or cut down on," she said.
Walid bought her last pack of the cigarettes she smokes for SR12 one day before the tax into effect. Now it is SR24.
Gulf Cooperation Council (GCC) countries are also set to implement a value-added tax (VAT) of 5 percent on certain goods beginning in 2018.

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hajj،عرب نيوز

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New tax doubles price of cigarettes, energy drinks in Saudi Arabia

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JEDDAH: Prices of cigarettes and energy drinks have doubled with the implementation of an excise tax that became effective midnight Saturday in a measure unprecedented in the Kingdom. The excise tax, commonly known as a "sin tax," is imposed on "unhealthy products" that are likely to cause health problems and eventually increase medical expenses paid by individuals or the government, according to the General Authority of Zakat and Tax (GAZT) official website.