Slash sin taxes to help the poor

The Mirror features an IEA report

Calls to slash tax on booze, tobacco and fuel could save the poor up to £650 a year.

Experts want Chancellor George Osborne to cut “sin taxes” by 50 per cent to help millions of families fight the cost of living crisis.

The poorest 20 per cent pay £1,286 in taxes on gambling, cigarettes, alcohol and other duties, said the influential Institute of Economic Affairs.

Halving the taxes would cut a litre of petrol from £1.33 to 98p and 20 cigarettes would drop from £7.98 to £5.08.

Author Christopher Snowdon said: “The poorest spend a much higher proportion of their income on high-taxed products such as alcohol and tobacco.”

The report says a smoker from the poorest fifth of families spends up to 22 per cent of disposable cash on cigarettes.

The study, on “the sin taxes that make the poor poorer”, said: “The most effective way for the state to lift people out of poverty is to stop taking their money.”

A Government source said: “Tax is one way to change behaviour, ­particularly over smoking and drinking.”

Read the full article here.

Invest in the IEA. We are the catalyst for changing consensus and influencing public debate.

Donate now

Thank you for
your support

Subscribe to
publications

Subscribe