England, UK: Evidence Shows Alcohol Taxes Work

New alcohol duty rules introduced in August 2023 are reshaping the UK’s alcohol market. Under the improved structure, taxes are now based on Alcohol by Volume (ABV), encouraging producers to lower the strength of their products to reduce costs.
Nearly two years later, evidence shows the reform has driven all major breweries to lower the strength of their alcoholic products, in a move to cut tax costs.
These developments illustrate that alcohol taxation policy can effectively influence alcohol supply, formulation, and marketing strategies.

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