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Re: European Court rules minimum cigarette prices illegal.
Dear Sir,
The recent European Court of Justice ruling on the minimum pricing of
cigarettes has no doubt led to head scratching in a number of governments
across the EU. Administrations in France, Austria and Ireland all use
minimum pricing as a deterrent to smoking and also to raise tax revenue.
In the United Kingdom, minimum pricing is not used but cigarettes and
tobacco products do carry heavy duties. According to the Tobacco
Manufacturer’s Association, 76% of the cost of each UK cigarette goes to
the exchequer.(1)
The above judgement on cigarettes could have significant implications
for alcohol policy for the UK. Current regulations impose VAT and a
separate duty depending upon the type of drink that is sold, making it
difficult to determine the percentage of tax. However, it is clear that
the price of alcohol has significantly fallen over the past 40 years (real
terms cost). This has in turn fuelled increased consumption.(2) The ill-
effects of excess consumption are clear to see in the NHS, both in terms
of acute admissions and also in chronic treatments.
One recent proposal to tackle excess alcohol consumption is to
introduce a minimum price per unit of alcohol sold. Thus, the European
Court of Justice judgement raises the possibility that this policy may in
actual fact be illegal. However, according to Nicola Sturgeon, the
Scottish Health Secretary, the European Commission has stated that EU
legislation does not prohibit minimum retail prices for alcoholic drinks
on public health grounds.(3)
Whilst both the Tories and Labour oppose minimum pricing, the need to
tackle excess alcohol consumption and related issues is not in doubt. We
hope that legislators will look at this issue with care and deliver a
successful policy to tackle excessive alcohol consumption and related
issues.
Minimum alcohol prices illegal?
Re: European Court rules minimum cigarette prices illegal.
Dear Sir,
The recent European Court of Justice ruling on the minimum pricing of
cigarettes has no doubt led to head scratching in a number of governments
across the EU. Administrations in France, Austria and Ireland all use
minimum pricing as a deterrent to smoking and also to raise tax revenue.
In the United Kingdom, minimum pricing is not used but cigarettes and
tobacco products do carry heavy duties. According to the Tobacco
Manufacturer’s Association, 76% of the cost of each UK cigarette goes to
the exchequer.(1)
The above judgement on cigarettes could have significant implications
for alcohol policy for the UK. Current regulations impose VAT and a
separate duty depending upon the type of drink that is sold, making it
difficult to determine the percentage of tax. However, it is clear that
the price of alcohol has significantly fallen over the past 40 years (real
terms cost). This has in turn fuelled increased consumption.(2) The ill-
effects of excess consumption are clear to see in the NHS, both in terms
of acute admissions and also in chronic treatments.
One recent proposal to tackle excess alcohol consumption is to
introduce a minimum price per unit of alcohol sold. Thus, the European
Court of Justice judgement raises the possibility that this policy may in
actual fact be illegal. However, according to Nicola Sturgeon, the
Scottish Health Secretary, the European Commission has stated that EU
legislation does not prohibit minimum retail prices for alcoholic drinks
on public health grounds.(3)
Whilst both the Tories and Labour oppose minimum pricing, the need to
tackle excess alcohol consumption and related issues is not in doubt. We
hope that legislators will look at this issue with care and deliver a
successful policy to tackle excessive alcohol consumption and related
issues.
References
1. Tobacco Manufacturers’ Association. http://www.the-
tma.org.uk/page.aspx?page_id=42 Accessed 20/03/2010.
2. Calling Time: The Nation’s drinking as a major health issue. A
report from the Academy of Medical Sciences, March 2004.
3. Nicola Sturgeon. http://www.scottish.parliament.uk/business/pqa/wa
-09/wa1109.htm Accessed 20/03/2010
Saheel Mukhtar
Specialty Registrar,
Kent and Canterbury Hospital,
Ethelbert Road
Canterbury
CT1 3LJ
Competing interests:
None declared
Competing interests: No competing interests