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Excise and Import Taxes on Wine Versus Beer and Spirits: An International Comparison

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  • Kym Anderson

Abstract

Nearly all countries tax the domestic consumption of alcoholic beverages. However, the rates of taxation, and the tax instruments used, vary enormously between countries. This study provides estimates, for a wide range of high‐income and developing countries, of the consumer tax equivalents (CTEs) of wine, beer and spirits taxes as of 2008. It encompasses wholesale sales taxes, excise taxes and import tariffs expressed both in dollars per litre of alcohol and as a percentage of what the wholesale price would be without those taxes (as many taxes are volumetric and so their percentage CTE rates vary with the price of the product). The wine CTE tends to be lower in countries with a large wine industry, by which standard Australia is shown to have relatively high wine CTEs at least for premium wine. However, because Australia uses a percentage tax rather than the far more commonly used volumetric tax measure, it has a relatively low rate for non‐premium wine.

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  • Kym Anderson, 2010. "Excise and Import Taxes on Wine Versus Beer and Spirits: An International Comparison," Economic Papers, The Economic Society of Australia, vol. 29(2), pages 215-228, June.
  • Handle: RePEc:bla:econpa:v:29:y:2010:i:2:p:215-228
    DOI: 10.1111/j.1759-3441.2010.00064.x
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    1. Harry Clarke, 2008. "The Economist’s Way of Thinking About Alcohol Policy," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 15(2), pages 27-44.
    2. Kym Anderson, 2010. "Excise and Import Taxes on Wine vs Beer and Spirits: An International Comparison," Wine Economics Research Centre Working Papers 2010-05, University of Adelaide, Wine Economics Research Centre.
    3. John Freebairn, 2010. "Special Taxation of Alcoholic Beverages to Correct Market Failures," Economic Papers, The Economic Society of Australia, vol. 29(2), pages 200-214, June.
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    5. Glyn Wittwer & Kym Anderson, 2019. "Impact of the GST and Wine Tax Reform on Australia’s Wine Industry: A CGE Analysis," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 17, pages 415-435, World Scientific Publishing Co. Pte. Ltd..
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    9. Berger, Nicholas & Anderson, Kym, 1999. "Consumer And Import Taxes In The World Wine Market: Australia In International Perspective," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123770, Australian Agricultural and Resource Economics Society.
    10. Kym Anderson & Ernesto Valenzuela & Glyn Wittwer, 2009. "Wine export demand shocks and wine tax reform in Australia: Regional consequences using an economy-wide approach," Centre for International Economic Studies Working Papers 2009-02, University of Adelaide, Centre for International Economic Studies.
    11. Kenkel, Donald S, 1996. "New Estimates of the Optimal Tax on Alcohol," Economic Inquiry, Western Economic Association International, vol. 34(2), pages 296-319, April.
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    13. Britten-Jones, Mark & Nettle, Richard S & Anderson, Kym, 1987. "On Optimal Second-Best Trade Intervention in the Presence of a Domestic Divergence," Australian Economic Papers, Wiley Blackwell, vol. 26(49), pages 332-336, December.
    14. Preety Srivastava & Xueyan Zhao, 2010. "What Do the Bingers Drink? Microeconometric Evidence on Negative Externatilities of Alcohol Consumption by Beverage Types," Monash Econometrics and Business Statistics Working Papers 1/10, Monash University, Department of Econometrics and Business Statistics.
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    Cited by:

    1. Kym Anderson & Signe Nelgen, 2011. "Wine's Globalization: New Opportunities, New Challenges," Wine Economics Research Centre Working Papers 2011-01, University of Adelaide, Wine Economics Research Centre.
    2. Kym Anderson, 2020. "Evolving from a rum state: Australia's alcohol consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 724-749, July.
    3. Alexander J. Holmes & Kym Anderson, 2019. "Convergence in National Alcohol Consumption Patterns: New Global Indicators," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 25, pages 631-670, World Scientific Publishing Co. Pte. Ltd..
    4. Anderson, Kym, 2018. "Australian wine industry competitiveness: why so slow to emerge?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), October.
    5. Kym Anderson & Glyn Wittwer, 2019. "Asia’s Evolving Role in Global Wine Markets," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 14, pages 347-377, World Scientific Publishing Co. Pte. Ltd..
    6. Anderson, Kym, 2020. "Consumer Taxes on Alcohol: An International Comparison over Time," Journal of Wine Economics, Cambridge University Press, vol. 15(1), pages 42-70, February.
    7. Paola Corsinovi, 2021. "Consumer Taxes on Alcohol: Is the Wine Sector a Niche Within the Alcoholic Beverages?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(2), pages 341-348, July.
    8. Kym Anderson & Giulia Meloni & Johan Swinnen, 2019. "Global Alcohol Markets: Evolving Consumption Patterns, Regulations, and Industrial Organizations," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 26, pages 671-712, World Scientific Publishing Co. Pte. Ltd..
    9. Kym Anderson, 2019. "Excise Taxes on Wines, Beers and Spirits: An Updated International Comparison," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 19, pages 461-477, World Scientific Publishing Co. Pte. Ltd..
    10. Anderson, Kym, 2020. "Evolving from a Rum State: Australia’s Alcohol Consumption," CEPR Discussion Papers 14761, C.E.P.R. Discussion Papers.
    11. Mariani, A. & Napoletano, F. & Pomarici, E. & Vecchio, R., 2014. "Tariff and Non-Tariff Barriers to Wine Exports and Initiatives to Reduce their Effects," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(1), pages 1-20.
    12. Michele Santoni, 2017. "Protective Excise Taxation," Journal of Industry, Competition and Trade, Springer, vol. 17(4), pages 421-445, December.
    13. Brester, Gary W. & McCullough, Michael & Atwood, Joseph & Austin, Caroline, 2023. "Beer Excise Taxes and the Craft Beverage and Modernization Tax Reform Act," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.
    14. Kym Anderson, 2010. "Reforming Taxes on Wine and Other Alcoholic Beverage Consumption," Economic Papers, The Economic Society of Australia, vol. 29(2), pages 197-199, June.
    15. Nelson Jon P. & Moran John R., 2020. "Effects of Alcohol Taxation on Prices: A Systematic Review and Meta-Analysis of Pass-Through Rates," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-21, January.
    16. Kym Anderson & Vicente Pinilla, 2017. "Annual Database of Global Wine Markets, 1835 to 2016: Methodology, Derived Indicators, and Sources," Wine Economics Research Centre Working Papers 2017-04, University of Adelaide, Wine Economics Research Centre.
    17. Kym Anderson & Glyn Wittwer, 2015. "Impact of Australia's Free Trade Agreements with China, Japan and Korea: The case of wine," Wine Economics Research Centre Working Papers 2015-04, University of Adelaide, Wine Economics Research Centre.
    18. Paola Corsinovi & Davide Gaeta, 2017. "European Wine Policies and their consequences on the global wine trade," Economia agro-alimentare, FrancoAngeli Editore, vol. 19(1), pages 59-88.

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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