26 Jun 2014
LU researcher calls for rethink on way alcohol duty is levied
UK supermarkets could be hindering government efforts to reduce the negative impacts of alcohol consumption by not fully passing tax increases onto the price of the cheapest beers and spirits, says Dr Jonathan Seaton from the School of Business and Economics.
Retailers appear to respond to increases in alcohol taxes by ‘under-shifting’ their cheaper products (raising prices below the level implied by the tax increase) and conversely ‘over-shifting’ their more expensive products, according to the research.
The pioneering study, funded by the Medical Research Council, was led by the University of Sheffield’s School of Health and Related Research (ScHARR), with business experts from the University of East Anglia (UEA) and Loughborough.
Read the press release for more.